Contrasting Live Ventures (LIVE) and Yirendai (YRD)

Live Ventures (NASDAQ: LIVE) and Yirendai (NYSE:YRD) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, risk, analyst recommendations, profitability, institutional ownership, dividends and earnings.

Institutional & Insider Ownership

6.2% of Live Ventures shares are held by institutional investors. Comparatively, 10.0% of Yirendai shares are held by institutional investors. 64.9% of Live Ventures shares are held by company insiders. Comparatively, 42.2% of Yirendai shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock 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 4.2%. Live Ventures does not pay a dividend. Yirendai pays out 47.0% of its earnings in the form of a dividend.

Analyst Recommendations

This is a summary of current ratings for Live Ventures and Yirendai, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Live Ventures 0 0 0 0 N/A
Yirendai 0 0 3 0 3.00

Yirendai has a consensus target price of $55.00, suggesting a potential upside of 54.97%. Given Yirendai’s higher possible upside, analysts clearly believe Yirendai is more favorable than Live Ventures.

Earnings & Valuation

This table compares Live Ventures and Yirendai’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Live Ventures $152.06 million 0.17 $6.50 million $1.69 7.87
Yirendai $466.37 million 4.55 $160.79 million $3.15 11.27

Yirendai has higher revenue and earnings than Live Ventures. Live Ventures is trading at a lower price-to-earnings ratio than Yirendai, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Live Ventures and Yirendai’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Live Ventures 4.28% 20.63% 5.24%
Yirendai 27.09% 70.10% 29.13%

Volatility & Risk

Live Ventures has a beta of -3.65, meaning that its share price is 465% less volatile than the S&P 500. Comparatively, Yirendai has a beta of 6.14, meaning that its share price is 514% more volatile than the S&P 500.

Summary

Yirendai beats Live Ventures on 13 of the 15 factors compared between the two stocks.

About Live Ventures

Live Ventures Incorporated is a holding company for diversified businesses. The Company’s segments include Manufacturing Segment, Marketplace Platform Segment and Services Segment. The Manufacturing Segment consists of Marquis Industries, Inc. The Marketplace Platform segment consists of livedeal.com and Modern Everyday, Inc. The Services Segment consists of the local exchange carrier billings business and velocity local. It operates LiveDeal.com, a real-time deal engine that connects restaurants across the United States and consumers through an online mobile platform. It is focused on the residential, commercial and hospitality end-markets. As of September 30, 2016, the Company operated its business through 13 divisions, each specializing in a distinct area of the business, such as Best Buy flooring Source, Marquis Carpet, Best Buy Hard surface, A-O Industries, Quantum Textiles and B and H Tufters.

About Yirendai

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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