Yirendai (NYSE: YRD) and Trivago N.V. ADS (NASDAQ:TRVG) are both mid-cap computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, earnings, risk, analyst recommendations, institutional ownership, dividends and valuation.

Profitability

This table compares Yirendai and Trivago N.V. ADS’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Yirendai 32.37% 80.79% 36.20%
Trivago N.V. ADS N/A N/A N/A

Dividends

Yirendai pays an annual dividend of $1.48 per share and has a dividend yield of 3.5%. Trivago N.V. ADS does not pay a dividend. Yirendai pays out 45.4% of its earnings in the form of a dividend.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Yirendai and Trivago N.V. ADS, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Yirendai 1 0 1 0 2.00
Trivago N.V. ADS 0 9 1 0 2.10

Yirendai presently has a consensus target price of $29.00, suggesting a potential downside of 30.85%. Trivago N.V. ADS has a consensus target price of $16.70, suggesting a potential upside of 53.92%. Given Trivago N.V. ADS’s stronger consensus rating and higher possible upside, analysts clearly believe Trivago N.V. ADS is more favorable than Yirendai.

Institutional and Insider Ownership

6.9% of Yirendai shares are owned by institutional investors. Comparatively, 13.6% of Trivago N.V. ADS shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Yirendai and Trivago N.V. ADS’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Yirendai $635.79 million 3.94 $213.72 million $3.26 12.87
Trivago N.V. ADS $1.18 billion 3.22 $31.99 million N/A N/A

Yirendai has higher revenue, but lower earnings than Trivago N.V. ADS.

Summary

Yirendai beats Trivago N.V. ADS on 6 of the 11 factors compared between the two stocks.

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.

Trivago N.V. ADS Company Profile

Trivago NV is a company based in the Netherlands that operates an online hotel search platform. The platform allows users to search for, compare and book hotels. It gathers information from various third parties’ platforms and provides information about the hotel, pictures, ratings, reviews and filters, such as price, location and extra options. The Company offers access to approximately 1.3 million hotels in over 190 countries via more than 50 localized websites and applications in various languages. The Company also offers marketing tools and services to hotels and hotel chains, as well as to online travel agencies and advertisers, among others. Its principal executive offices are located in Germany.

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