Liberty TripAdvisor Holdings (LTRPA) & Yirendai (YRD) Critical Comparison
Liberty TripAdvisor Holdings (NASDAQ: LTRPA) and Yirendai (NYSE:YRD) are both computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, risk, dividends, earnings, institutional ownership, analyst recommendations and valuation.
Insider & Institutional Ownership
93.8% of Liberty TripAdvisor Holdings shares are held by institutional investors. Comparatively, 6.9% of Yirendai shares are held by institutional investors. 4.0% of Liberty TripAdvisor Holdings shares are held by insiders. Comparatively, 42.2% of Yirendai shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
This is a summary of current recommendations and price targets for Liberty TripAdvisor Holdings and Yirendai, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Liberty TripAdvisor Holdings||0||1||0||0||2.00|
Yirendai has a consensus target price of $29.00, suggesting a potential downside of 27.50%. Given Yirendai’s higher possible upside, analysts plainly believe Yirendai is more favorable than Liberty TripAdvisor Holdings.
Earnings & Valuation
This table compares Liberty TripAdvisor Holdings and Yirendai’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Liberty TripAdvisor Holdings||$1.58 billion||0.61||$238.00 million||$0.39||34.23|
|Yirendai||$621.75 million||3.85||$208.89 million||$3.26||12.27|
Liberty TripAdvisor Holdings has higher revenue and earnings than Yirendai. Yirendai is trading at a lower price-to-earnings ratio than Liberty TripAdvisor Holdings, indicating that it is currently the more affordable of the two stocks.
This table compares Liberty TripAdvisor Holdings and Yirendai’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Liberty TripAdvisor Holdings||1.20%||0.45%||0.33%|
Volatility & Risk
Liberty TripAdvisor Holdings has a beta of 2.27, indicating that its stock price is 127% more volatile than the S&P 500. Comparatively, Yirendai has a beta of 8.56, indicating that its stock price is 756% more volatile than the S&P 500.
Yirendai beats Liberty TripAdvisor Holdings on 9 of the 13 factors compared between the two stocks.
About Liberty TripAdvisor Holdings
Liberty TripAdvisor Holdings, Inc. is a holding company. Through its interests in subsidiaries and other companies, the Company is primarily engaged in the online travel research and online commerce industries. The Company’s subsidiaries include TripAdvisor, Inc. (TripAdvisor), which owns and operates a portfolio of online travel brands, and BuySeasons, Inc., which owns and operates BuyCostumes.com and the Celebrate Express (BuySeasons) family of Websites. TripAdvisor is a travel site focusing on helping people around the world to plan and book a trip. TripAdvisor manages its business in two segments: Hotel, including click-based advertising, display-based advertising and subscription-based advertising, and Non-Hotel, including its attractions, restaurants and vacation rental businesses. BuySeasons is an online retailer and supplier of costumes, accessories, seasonal decor and party supplies.
Yirendai Ltd. is engaged in online consumer finance marketplace business in China. The Company conducts its business in China, through Yi Ren Heng Ye Technology Development (Beijing) Co., Ltd. (Heng Ye) and its consolidated variable interest entity, Heng Cheng Technology Development (Beijing) Co., Ltd. (Heng Cheng). Heng Cheng operates its Website, www.yirendai.com, and has an Internet content provider (ICP) license as an Internet information provider. Its online marketplace facilitates standard loan products, express loan products and vertical loan products to borrowers. Uses for these loan products include home remodels, durable good purchases, travel and continuing education. Its online marketplace provides investors with various investing tools, such as automated investing tool and self-directed investing tool. It maintains a secondary loan market on its marketplace where investors can transfer the loans they hold prior to maturity at the fair value of the remaining loans.
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