Trivago N.V. ADS (NASDAQ:TRVG) & JOYY (NASDAQ:JOYY) Critical Comparison

Trivago N.V. ADS (NASDAQ:TRVG) and JOYY (NASDAQ:JOYY) are both communication services companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, valuation, analyst recommendations, institutional ownership, risk, profitability and earnings.

Volatility and Risk

Trivago N.V. ADS has a beta of 0.98, meaning that its share price is 2% less volatile than the S&P 500. Comparatively, JOYY has a beta of 0.45, meaning that its share price is 55% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Trivago N.V. ADS	2.19%	7.76%	4.23%
JOYY	9.64%	3.28%	2.85%

Analyst Ratings

This is a summary of current ratings for Trivago N.V. ADS and JOYY, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Trivago N.V. ADS	0	6	1	1	2.38
JOYY	0	1	6	0	2.86

Trivago N.V. ADS currently has a consensus price target of $5.57, indicating a potential downside of 3.30%. JOYY has a consensus price target of $83.40, indicating a potential upside of 8.53%. Given JOYY’s stronger consensus rating and higher possible upside, analysts plainly believe JOYY is more favorable than Trivago N.V. ADS.

Earnings & Valuation

This table compares Trivago N.V. ADS and JOYY”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Trivago N.V. ADS	$620.90 million	0.66	$12.69 million	$0.06	96.00
JOYY	$2.12 billion	1.77	$2.10 billion	$4.19	18.34

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

Institutional & Insider Ownership

4.5% of Trivago N.V. ADS shares are owned by institutional investors. Comparatively, 36.8% of JOYY shares are owned by institutional investors. 6.5% of Trivago N.V. ADS shares are owned by company insiders. Comparatively, 43.0% of JOYY shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

JOYY beats Trivago N.V. ADS on 10 of the 15 factors compared between the two stocks.

About Trivago N.V. ADS

trivago N.V., together with its subsidiaries, operates a hotel and accommodation search platform in the United States, Germany, the United Kingdom, Canada, Japan, and internationally. It offers an online meta-search for hotels and accommodation through online travel agencies, hotel chains, and independent hotels. The company provides travel search for different types of accommodations, such as hotels, vacation rentals, and apartments; and enable advertiser access through website and apps. In addition, it offers access to its platform through various localized websites and apps in various languages. The company was incorporated in 2005 and is headquartered in Düsseldorf, Germany. trivago N.V. operates as a subsidiary of Expedia Lodging Partner Services Sarl.

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.