Yirendai (NYSE: YRD) is one of 50 public companies in the “Internet Services” industry, but how does it contrast to its competitors? We will compare Yirendai to related companies based on the strength of its profitability, analyst recommendations, dividends, institutional ownership, risk, valuation and earnings.

Volatility & Risk

Yirendai has a beta of 8.56, meaning that its share price is 756% more volatile than the S&P 500. Comparatively, Yirendai’s competitors have a beta of 1.36, meaning that their average share price is 36% more volatile than the S&P 500.

Earnings and Valuation

This table compares Yirendai and its competitors top-line revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Yirendai $635.79 million $213.72 million 13.04
Yirendai Competitors $942.22 million $116.70 million 52.06

Yirendai’s competitors have higher revenue, but lower earnings than Yirendai. Yirendai is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Yirendai and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Yirendai 1 0 1 0 2.00
Yirendai Competitors 444 1700 2642 106 2.49

Yirendai currently has a consensus target price of $29.00, suggesting a potential downside of 31.80%. As a group, “Internet Services” companies have a potential upside of 4.08%. Given Yirendai’s competitors stronger consensus rating and higher probable upside, analysts clearly believe Yirendai has less favorable growth aspects than its competitors.

Profitability

This table compares Yirendai and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Yirendai 32.37% 80.79% 36.20%
Yirendai Competitors -0.09% 27.21% 6.31%

Institutional & Insider Ownership

6.9% of Yirendai shares are held by institutional investors. Comparatively, 74.3% of shares of all “Internet Services” companies are held by institutional investors. 19.5% of shares of all “Internet Services” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Yirendai competitors beat Yirendai on 8 of the 13 factors compared.

Yirendai Company Profile

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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