Head-To-Head Contrast: United Internet (OTCMKTS:UDIRF) vs. JOYY (NASDAQ:YY)

JOYY (NASDAQ:YY) and United Internet (OTCMKTS:UDIRF) are both mid-cap communication services companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, risk, analyst recommendations, profitability, earnings, institutional ownership and valuation.

Volatility & Risk

JOYY has a beta of 0.21, meaning that its stock price is 79% less volatile than the S&P 500. Comparatively, United Internet has a beta of 0.11, meaning that its stock price is 89% less volatile than the S&P 500.

Profitability

This table compares JOYY and United Internet’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
JOYY	9.02%	4.64%	2.96%
United Internet	N/A	N/A	N/A

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
JOYY	$2.24 billion	1.93	$301.82 million	($3.10)	-25.93
United Internet	$6.85 billion	0.77	$114.57 million	($0.34)	-80.40

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

Insider and Institutional Ownership

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 endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and target prices for JOYY and United Internet, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
JOYY	0	0	2	0	3.00
United Internet	0	0	2	0	3.00

JOYY currently has a consensus price target of $66.00, indicating a potential downside of 17.89%. Given JOYY’s higher possible upside, research analysts clearly believe JOYY is more favorable than United Internet.

Summary

JOYY beats United Internet on 10 of the 12 factors compared between the two stocks.

About JOYY

JOYY Inc., together with its subsidiaries, operates social media platforms that offer users engaging and experience across various video-based social platforms. It operates through two segments, BIGO and All Other. The company operates Bigo Live, a social live streaming platform, that provides an interactive online stage for users to host and watch live streaming sessions, share their life moments, showcase their talents, and interact with people worldwide; Likee, a short-form video social platform, which enables users to discover, create, and share short videos, with video creation tools and personalized feeds; imo, an instant messenger platform, that provides audio and video communication services; Hago, a social networking platform that offers casual games integrating social features, such as audio and video multi-user chatrooms and 3D virtual interactive party games; and Shopline, a smart commerce platform, that provides solutions and services to enable merchants in creating and growing their brands online and reach customers through various sales channels, including e-commerce platforms, social commerce, and physical retail stores. It operates in the People's Republic of China, the United States, the Great Britain, Japan, South Korea, Australia, the Middle East, Southeast Asia, and internationally. 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.

About United Internet

United Internet AG, through its subsidiaries, operates as an Internet service provider worldwide. The company operates through Consumer Access, Business Access, Consumer Applications, and Business Applications segments. It offers landline-based broadband and mobile internet products, including home networks, online storage, telephony, and IPTV for private users; and telecommunication products ranging from fiber-optic direct connections to tailored ICT solutions, which include voice, data, and network solutions, as well as infrastructure services to national and international carriers and ISPs. The company also provides applications and services for home users, such as personal information management applications comprising email, to-do lists, appointments, and addresses; and online cloud storage, as well as domains and website solutions. In addition, it provides business applications for freelancers and small to medium enterprises, such as domains, websites, web hosting, servers, cloud solutions, e-shops, group work, online cloud storage, and office software. It offers its access products through the yourfone, smartmobile.de, 1&1, and 1&1 Versatel brands; and applications through GMX, mail.com, WEB.DE, home.pl, Arsys, STRATO, IONOS, Fasthosts, we22, InterNetX, united-domains, and World4You brand names. In addition, the company offers customers professional services in the fields of active domain management; performance-based advertising and sales services under the Sedo brand name; online advertising services under the United Internet Media brand name; and white-label website builder services under the we22 brand, as well as sells IT hardware. The company was incorporated in 1988 and is headquartered in Montabaur, Germany.