Head-To-Head Analysis: JOYY (NASDAQ:JOYY) vs. Kakaku.com (OTCMKTS:KKKUF)

Kakaku.com (OTCMKTS:KKKUF) and JOYY (NASDAQ:JOYY) are both communication services companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, valuation, dividends, earnings, institutional ownership, analyst recommendations and risk.

Dividends

Kakaku.com pays an annual dividend of $9.96 per share and has a dividend yield of 43.9%. JOYY pays an annual dividend of $5.98 per share and has a dividend yield of 8.0%. Kakaku.com pays out 23.1% of its earnings in the form of a dividend. JOYY pays out 138.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Kakaku.com is clearly the better dividend stock, given its higher yield and lower payout ratio.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kakaku.com	N/A	N/A	N/A	$43.08	0.53
JOYY	$2.12 billion	1.76	$2.10 billion	$4.31	17.40

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

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Kakaku.com and JOYY, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kakaku.com	0	0	0	0	0.00
JOYY	0	2	3	0	2.60

JOYY has a consensus price target of $80.50, suggesting a potential upside of 7.33%. Given JOYY’s stronger consensus rating and higher possible upside, analysts plainly believe JOYY is more favorable than Kakaku.com.

Profitability

This table compares Kakaku.com and JOYY’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kakaku.com	N/A	N/A	N/A
JOYY	10.42%	3.67%	3.20%

Institutional and Insider Ownership

24.1% of Kakaku.com shares are owned by institutional investors. Comparatively, 36.8% of JOYY shares are owned by institutional investors. 43.0% of JOYY shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

JOYY beats Kakaku.com on 10 of the 13 factors compared between the two stocks.

About Kakaku.com

Kakaku.com, Inc., together with its subsidiaries, engages in the provision of purchase support, restaurant review, and other services in Japan. The company operates Kakaku.com, that provides prices, specifications, and user reviews, on various products and services, such as computers, home appliances, smartphones, interiors, fashion, internet providers, and insurances; and Tabelog.com, a restaurant discovery and reservation site. It also operates Kyujin box and Jobcube, job classified websites; Sumaity, a residential real estate website; 4 travel, a travel review and comparison site; icotto, an online travel Information media site; Bus Hikaku Navi, a price comparison site for highway/overnight buses and bus tours; Low price trips, a price comparison site for domestic travel and overseas airline tickets; and Bus Trip, an online media on highway busses and bus tours. In addition, the company operates kinarino, a lifestyle media; TASCLAP an online media for men's fashion; Pathee, a shopping spot information site; eiga.com, an online database for movies and showtimes; Akiba-souken, an animation and Akihabara culture information media; PHOTOHITO, a photo sharing community site; webCG, an online media for car enthusiasts; and FX-rashinban, a FX related information, commentary, and forecast site on foreign exchange market. Kakaku.com, Inc. was incorporated in 1997 and is headquartered in Tokyo, Japan.

About JOYY

JOYY Inc., through its subsidiaries, operates social media platforms that offer users engaging and experience across various video and audio-based social platforms. The company operates Bigo Live, a live streaming platform that allows users to live stream specific moments, such as live talk with other users, make video calls, and watch trend videos; Likee, a short-form video social platform that focuses on enabling users to create short-form video; Hago, a casual game-oriented social platform; and imo, a chat and instant messaging application with functions, including video calls, text messages, and photo and video sharing. It operates in the People’s Republic of China, the United States, the Great Britain, Japan, South Korea, Australia, the Middle East, and Southeast Asia and others. The company was formerly known as YY Inc. and changed its name to JOYY Inc. in December 2019. JOYY Inc. was founded in 2005 and is headquartered in Singapore.