Yirendai (NYSE:YRD) vs. Sohu.com (NASDAQ:SOHU) Head-To-Head Survey

Sohu.com (NASDAQ:SOHU) and Yirendai (NYSE:YRD) are both small-cap computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, analyst recommendations, risk, institutional ownership, dividends, valuation and earnings.

Profitability

This table compares Sohu.com and Yirendai’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sohu.com	67.44%	20.67%	13.84%
Yirendai	0.31%	0.18%	0.13%

Earnings & Valuation

This table compares Sohu.com and Yirendai”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sohu.com	$584.33 million	0.68	$394.10 million	$14.08	1.09
Yirendai	$817.84 million	0.18	$5.80 million	$0.03	56.50

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

Analyst Recommendations

This is a breakdown of current ratings and price targets for Sohu.com and Yirendai, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sohu.com	0	1	2	0	2.67
Yirendai	0	1	0	0	2.00

Sohu.com presently has a consensus price target of $20.00, indicating a potential upside of 30.89%. Given Sohu.com’s stronger consensus rating and higher possible upside, equities analysts plainly believe Sohu.com is more favorable than Yirendai.

Risk & Volatility

Sohu.com has a beta of 0.46, indicating that its share price is 54% less volatile than the S&P 500. Comparatively, Yirendai has a beta of 0.85, indicating that its share price is 15% less volatile than the S&P 500.

Insider & Institutional Ownership

33.0% of Sohu.com shares are held by institutional investors. Comparatively, 2.0% of Yirendai shares are held by institutional investors. 21.1% of Sohu.com shares are held by insiders. Comparatively, 42.2% of Yirendai shares are held by 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.

Summary

Sohu.com beats Yirendai on 10 of the 14 factors compared between the two stocks.

About Sohu.com

Sohu.com Limited engages in the provision of online media, video, and game products and services on personal computers (PCs) and mobile devices in China. It operates through two segments: Sohu and Changyou. The company offers online news, information, and content services through the mobile phone application Sohu News APP, mobile portal m.sohu.com, and www.sohu.com for PCs; and online video content and services through mobile phone application Sohu Video APP and tv.sohu.com, as well as ifox, a video application for PC. It also operates Focus (www.focus.cn), which provides online real estate information and services; and 17173.com website, which provides news, electronic forums, online videos, and other online game information services to game players, as well as offers mobile game distribution services. In addition, the company offers interactive online games for PCs and mobile devices. Further, it provides paid subscription and interactive broadcasting services. The company was incorporated in 1996 and is headquartered in Beijing, China.

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.