Financial Comparison: Yalla Group (NYSE:YALA) vs. CLEAR Secure (NYSE:YOU)

CLEAR Secure (NYSE:YOU) and Yalla Group (NYSE:YALA) are both computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, dividends, valuation, profitability, risk, earnings and institutional ownership.

Insider & Institutional Ownership

73.8% of CLEAR Secure shares are held by institutional investors. Comparatively, 4.7% of Yalla Group shares are held by institutional investors. 39.7% of CLEAR Secure shares are held by insiders. Comparatively, 52.2% of Yalla Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent recommendations and price targets for CLEAR Secure and Yalla Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CLEAR Secure	1	3	5	0	2.44
Yalla Group	0	1	0	0	2.00

CLEAR Secure presently has a consensus target price of $53.14, suggesting a potential upside of 8.44%. Given CLEAR Secure’s stronger consensus rating and higher possible upside, research analysts clearly believe CLEAR Secure is more favorable than Yalla Group.

Profitability

This table compares CLEAR Secure and Yalla Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CLEAR Secure	12.12%	70.08%	9.25%
Yalla Group	43.82%	19.67%	17.50%

Volatility & Risk

CLEAR Secure has a beta of 1.12, indicating that its share price is 12% more volatile than the S&P 500. Comparatively, Yalla Group has a beta of 0.43, indicating that its share price is 57% less volatile than the S&P 500.

Valuation & Earnings

This table compares CLEAR Secure and Yalla Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CLEAR Secure	$900.78 million	7.25	$109.17 million	$1.12	43.75
Yalla Group	$341.94 million	2.78	$149.84 million	$0.83	7.25

Yalla Group has lower revenue, but higher earnings than CLEAR Secure. Yalla Group is trading at a lower price-to-earnings ratio than CLEAR Secure, indicating that it is currently the more affordable of the two stocks.

Summary

CLEAR Secure beats Yalla Group on 10 of the 14 factors compared between the two stocks.

About CLEAR Secure

Clear Secure, Inc. operates a secure identity platform under the CLEAR brand name primarily in the United States. Its secure identity platform is a multi-layered infrastructure consisting of front-end, including enrollment, verification, and linking, as well as back-end. The company also offers CLEAR Plus, a consumer aviation subscription service, which enables access to predictable entry lanes in airport security checkpoints, as well as access to broader network; and CLEAR mobile app, which is used to enroll new members and improve the experience for existing members. In addition, it provides RESERVE powered by CLEAR, a virtual queuing technology that provides users with the ability to book a dedicated time slot to go through security at the airport; CLEAR Verified, a B2B offering that extends secure identity platform to partners to create friction-free experiences for their customers; TSA PreCheck Enrollment Provided by CLEAR, as well as online renewal services; Atlas Certified, an automated solution to verify professional licenses and certification data across industries; and Sora ID that enables adding know your customer services to platform offerings, as well as virtual queuing technology that enables customers to manage lines. The company was founded in 2010 and is headquartered in New York, New York. Clear Secure, Inc. is a subsidiary of Alclear Investments, Llc.

About Yalla Group

Yalla Group Limited operates a social networking and gaming platform primarily in the Middle East and North Africa region. It provides mobile applications, including Yalla, a voice-centric group chat platform; and Yalla Ludo, a casual gaming application. The company’s platform offers group chatting and games services; and sells virtual items, as well as provides upgrade services. The company was formerly known as FYXTech Corporation. Yalla Group Limited was founded in 2016 and is headquartered in Dubai, the United Arab Emirates.