Contrasting Yirendai (NYSE:YRD) and Metalpha Technology (NASDAQ:MATH)

Yirendai (NYSE:YRD) and Metalpha Technology (NASDAQ:MATH) are both small-cap computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their risk, analyst recommendations, valuation, institutional ownership, earnings, profitability and dividends.

Insider & Institutional Ownership

2.0% of Yirendai shares are owned by institutional investors. Comparatively, 30.5% of Metalpha Technology shares are owned by institutional investors. 42.2% of Yirendai shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Yirendai and Metalpha Technology’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Yirendai	20.19%	12.66%	8.93%
Metalpha Technology	N/A	N/A	N/A

Risk & Volatility

Yirendai has a beta of 0.89, indicating that its share price is 11% less volatile than the S&P 500. Comparatively, Metalpha Technology has a beta of -0.84, indicating that its share price is 184% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for Yirendai and Metalpha Technology, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Yirendai	0	1	0	0	2.00
Metalpha Technology	0	1	0	0	2.00

Valuation and Earnings

This table compares Yirendai and Metalpha Technology”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Yirendai	$6.22 billion	0.05	$216.77 million	$1.99	1.97
Metalpha Technology	$44.57 million	1.92	$15.90 million	N/A	N/A

Yirendai has higher revenue and earnings than Metalpha Technology.

Summary

Yirendai beats Metalpha Technology on 7 of the 9 factors compared between the two stocks.

About Yirendai

Yiren Digital Ltd. provides financial services through an AI-powered platform in China. Its platform provides a suite of financial and lifestyle services. The company offers financial services, which provides a portfolio of loan products to borrowers; insurance brokerage services; and consumption and lifestyle services, including non-financial products and services to meet various consumer needs. It supports clients at various growth stages, addressing financing needs arising from consumption and production activities, and augmenting the well-being and security of individuals, families, and businesses. The company was formerly known as Yirendai Ltd. and changed its name to Yiren Digital Ltd. in September 2019. Yiren Digital Ltd. was founded in 2012 and is based in Beijing, the People's Republic of China. Yiren Digital Ltd. operates as a subsidiary of CreditEase Holdings (Cayman) Limited.

About Metalpha Technology

Metalpha Technology Holding Limited, together with its subsidiaries, provides wealth management services in Hong Kong. The company offers digital asset-based wealth management services, which include issuing traditional financial and cryptocurrency derivative products to over-the-counter clients, providing crypto derivative market making services, and proprietary trading of digital assets and crypto derivative products; and securities advising and asset management services. It serves institutional investors and high-net-worth individuals. The company was formerly known as Dragon Victory International Limited and changed its name to Metalpha Technology Holding Limited in November 2022. The company was incorporated in 2015 and is headquartered in Wan Chai, Hong Kong.