Critical Comparison: Yahoo! (NASDAQ:AABA) & Yandex N.V. (YNDX)
Yahoo! (NASDAQ: AABA) and Yandex N.V. (NASDAQ:YNDX) are both large-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, valuation, risk, institutional ownership, dividends, profitabiliy and earnings.
This table compares Yahoo! and Yandex N.V.’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk & Volatility
Yahoo! has a beta of 1.82, indicating that its share price is 82% more volatile than the S&P 500. Comparatively, Yandex N.V. has a beta of 2.85, indicating that its share price is 185% more volatile than the S&P 500.
Earnings & Valuation
This table compares Yahoo! and Yandex N.V.’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Yandex N.V.||$2.58 billion||3.97||$709.09 million||$0.32||98.82|
Yandex N.V. has higher revenue and earnings than Yahoo!. Yahoo! is trading at a lower price-to-earnings ratio than Yandex N.V., indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
82.1% of Yahoo! shares are held by institutional investors. Comparatively, 70.6% of Yandex N.V. shares are held by institutional investors. 9.2% of Yahoo! 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.
This is a breakdown of current ratings and price targets for Yahoo! and Yandex N.V., as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Yahoo! presently has a consensus target price of $48.20, indicating a potential downside of 15.78%. Yandex N.V. has a consensus target price of $29.66, indicating a potential downside of 6.20%. Given Yandex N.V.’s stronger consensus rating and higher probable upside, analysts plainly believe Yandex N.V. is more favorable than Yahoo!.
Yandex N.V. beats Yahoo! on 8 of the 12 factors compared between the two stocks.
Altaba Inc. (the Fund), formerly Yahoo! Inc., is a non-diversified, closed-end management investment company. The Fund seeks to track the combined investment return of the Alibaba Shares and the Yahoo Japan Shares it owns. Alibaba Shares represent an approximate 15% equity interest in Alibaba Group Holding Limited (Alibaba), and its Yahoo Japan Corporation ((Yahoo Japa) Shares represent an approximate 36% equity interest in Yahoo Japan. In addition to the Alibaba Shares and the Yahoo Japan Shares, the Fund also owns the minority investments, all of the equity interests in Excalibur IP, LLC (which owns the Excalibur IP Assets) and the marketable debt securities portfolio. The Fund’s external investment advisors are BlackRock Advisors, LLC and Morgan Stanley Smith Barney LLC.
About Yandex N.V.
Yandex N.V. is an Internet and technology company, and operates Internet search engine. The Company’s segments include Search and Portal, E-commerce, Taxi, Classifieds and Experimental businesses. The Company’s Search and Portal segment offers a range of services in Russia, Ukraine, Belarus and Kazakhstan, among which are search, location-based, personalized and mobile services, that enable the Company’s users to find relevant and objective information to communicate and connect over the Internet, from both their desktops and mobile devices. The Company’s search engine offers access to a range of information available online. The Company’s Yandex.Market gives retailers a platform to reach customers seeking specific retailer, product or price information. As of December 31, 2016, Yandex.Taxi was operating in 46 cities across Russia, Georgia, Armenia, Kazakhstan, Belarus and Ukraine. The Company’s Classifieds business unit includes Auto.ru, Yandex.Realty, Yandex.Jobs and Yandex.Travel.
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