Yirendai (YRD) & Its Peers Head-To-Head Comparison

Yirendai (NYSE: YRD) is one of 51 publicly-traded companies in the “Internet Services” industry, but how does it weigh in compared to its rivals? We will compare Yirendai to related companies based on the strength of its profitability, dividends, risk, valuation, earnings, analyst recommendations and institutional ownership.

Analyst Recommendations

This is a breakdown of recent ratings for Yirendai and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Yirendai 1 0 1 0 2.00
Yirendai Competitors 405 1575 2650 86 2.51

Yirendai currently has a consensus target price of $29.00, suggesting a potential downside of 33.73%. As a group, “Internet Services” companies have a potential upside of 2.69%. Given Yirendai’s rivals stronger consensus rating and higher possible upside, analysts plainly believe Yirendai has less favorable growth aspects than its rivals.

Earnings and Valuation

This table compares Yirendai and its rivals revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Yirendai $635.79 million $213.72 million 13.42
Yirendai Competitors $956.92 million $128.04 million 43.49

Yirendai’s rivals have higher revenue, but lower earnings than Yirendai. Yirendai is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Dividends

Yirendai pays an annual dividend of $1.48 per share and has a dividend yield of 3.4%. Yirendai pays out 45.4% of its earnings in the form of a dividend. As a group, “Internet Services” companies pay a dividend yield of 3.0% and pay out 43.9% of their earnings in the form of a dividend.

Volatility and Risk

Yirendai has a beta of 8.51, indicating that its share price is 751% more volatile than the S&P 500. Comparatively, Yirendai’s rivals have a beta of 1.35, indicating that their average share price is 35% more volatile than the S&P 500.

Institutional & Insider Ownership

6.7% of Yirendai shares are owned by institutional investors. Comparatively, 62.7% of shares of all “Internet Services” companies are owned by institutional investors. 42.2% of Yirendai shares are owned by insiders. Comparatively, 22.2% of shares of all “Internet Services” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Yirendai and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Yirendai 32.37% 80.79% 36.20%
Yirendai Competitors 0.51% 26.77% 6.28%

Summary

Yirendai rivals beat Yirendai on 8 of the 15 factors compared.

Yirendai Company Profile

Yirendai Ltd. is engaged in online consumer finance marketplace business in China. The Company conducts its business in China, through Yi Ren Heng Ye Technology Development (Beijing) Co., Ltd. (Heng Ye) and its consolidated variable interest entity, Heng Cheng Technology Development (Beijing) Co., Ltd. (Heng Cheng). Heng Cheng operates its Website, www.yirendai.com, and has an Internet content provider (ICP) license as an Internet information provider. Its online marketplace facilitates standard loan products, express loan products and vertical loan products to borrowers. Uses for these loan products include home remodels, durable good purchases, travel and continuing education. Its online marketplace provides investors with various investing tools, such as automated investing tool and self-directed investing tool. It maintains a secondary loan market on its marketplace where investors can transfer the loans they hold prior to maturity at the fair value of the remaining loans.

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