Financial Comparison: QuinStreet (NASDAQ:QNST) & JOYY (NASDAQ:JOYY)

JOYY (NASDAQ:JOYY) and QuinStreet (NASDAQ:QNST) are both communication services companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, risk, profitability, valuation, dividends, institutional ownership and analyst recommendations.

Valuation and Earnings

This table compares JOYY and QuinStreet”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
JOYY	$2.27 billion	1.76	$2.10 billion	$4.19	19.49
QuinStreet	$1.29 billion	0.85	$81.24 million	$1.62	11.89

JOYY has higher revenue and earnings than QuinStreet. QuinStreet is trading at a lower price-to-earnings ratio than JOYY, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

JOYY has a beta of 0.44, suggesting that its share price is 56% less volatile than the S&P 500. Comparatively, QuinStreet has a beta of 0.84, suggesting that its share price is 16% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for JOYY and QuinStreet, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
JOYY	0	1	6	0	2.86
QuinStreet	0	2	4	0	2.67

JOYY presently has a consensus price target of $83.40, indicating a potential upside of 2.11%. QuinStreet has a consensus price target of $23.50, indicating a potential upside of 22.01%. Given QuinStreet’s higher probable upside, analysts plainly believe QuinStreet is more favorable than JOYY.

Profitability

This table compares JOYY and QuinStreet’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
JOYY	9.64%	3.28%	2.85%
QuinStreet	6.58%	15.69%	7.46%

Insider & Institutional Ownership

36.8% of JOYY shares are held by institutional investors. Comparatively, 97.8% of QuinStreet shares are held by institutional investors. 43.0% of JOYY shares are held by insiders. Comparatively, 3.5% of QuinStreet shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

JOYY beats QuinStreet on 9 of the 14 factors compared between the two stocks.

About JOYY

JOYY Inc., through its subsidiaries, operates social media platforms that offer users engaging and experience across various video and audio-based social platforms. The company operates Bigo Live, a live streaming platform that allows users to live stream specific moments, such as live talk with other users, make video calls, and watch trend videos; Likee, a short-form video social platform that focuses on enabling users to create short-form video; Hago, a casual game-oriented social platform; and imo, a chat and instant messaging application with functions, including video calls, text messages, and photo and video sharing. It operates in the People’s Republic of China, the United States, the Great Britain, Japan, South Korea, Australia, the Middle East, and Southeast Asia and others. The company was formerly known as YY Inc. and changed its name to JOYY Inc. in December 2019. JOYY Inc. was founded in 2005 and is headquartered in Singapore.

About QuinStreet

QuinStreet, Inc., an online performance marketing company, provides customer acquisition services for its clients in the United States and internationally. The company offers online marketing services, such as qualified clicks, leads, calls, applications, and customers through its websites or third-party publishers. It serves financial and home services industries. The company was incorporated in 1999 and is headquartered in Foster City, California.