Head-To-Head Contrast: Yirendai (YRD) versus Its Competitors

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

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 0.22% 26.55% 6.19%

Volatility & Risk

Yirendai has a beta of 8.52, suggesting that its stock price is 752% more volatile than the S&P 500. Comparatively, Yirendai’s competitors have a beta of 1.35, suggesting that their average stock price is 35% more volatile than the S&P 500.

Earnings & 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 15.74
Yirendai Competitors $952.95 million $127.27 million 56.85

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 recent ratings and price targets for Yirendai and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Yirendai 1 0 1 0 2.00
Yirendai Competitors 398 1550 2608 86 2.51

Yirendai currently has a consensus target price of $29.00, suggesting a potential downside of 43.47%. As a group, “Internet Services” companies have a potential upside of 0.81%. Given Yirendai’s competitors stronger consensus rating and higher probable upside, analysts clearly believe Yirendai has less favorable growth aspects than its competitors.

Insider & Institutional Ownership

6.9% of Yirendai shares are held by institutional investors. Comparatively, 73.9% of shares of all “Internet Services” companies are held by institutional investors. 19.5% of shares of all “Internet Services” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Dividends

Yirendai pays an annual dividend of $1.48 per share and has a dividend yield of 2.9%. Yirendai pays out 45.4% of its earnings in the form of a dividend. As a group, “Internet Services” companies pay a dividend yield of 2.6% and pay out 43.9% of their earnings in the form of a dividend.

Summary

Yirendai competitors beat Yirendai on 9 of the 15 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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