Analyzing Autohome (NYSE:ATHM) & Yirendai (YRD)

Yirendai (NYSE: YRD) and Autohome (NYSE:ATHM) are both mid-cap computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, profitability, risk, earnings, institutional ownership, analyst recommendations and dividends.

Dividends

Yirendai pays an annual dividend of $1.48 per share and has a dividend yield of 4.4%. Autohome does not pay a dividend. Yirendai pays out 47.0% of its earnings in the form of a dividend.

Insider and Institutional Ownership

8.8% of Yirendai shares are owned by institutional investors. Comparatively, 38.8% of Autohome shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Yirendai 27.09% 70.10% 29.13%
Autohome 25.52% 23.48% 16.58%

Analyst Recommendations

This is a summary of recent ratings and target prices for Yirendai and Autohome, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Yirendai 0 0 3 0 3.00
Autohome 0 0 4 0 3.00

Yirendai presently has a consensus price target of $55.00, indicating a potential upside of 62.19%. Autohome has a consensus price target of $72.27, indicating a potential upside of 30.00%. Given Yirendai’s higher possible upside, analysts clearly believe Yirendai is more favorable than Autohome.

Volatility and Risk

Yirendai has a beta of 7.82, meaning that its stock price is 682% more volatile than the S&P 500. Comparatively, Autohome has a beta of 2.06, meaning that its stock price is 106% more volatile than the S&P 500.

Earnings & Valuation

This table compares Yirendai and Autohome’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Yirendai $466.37 million 4.35 $160.79 million $3.15 10.77
Autohome $338.13 million 19.43 $176.85 million $2.07 26.86

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

Summary

Yirendai beats Autohome on 8 of the 14 factors compared between the two stocks.

About Yirendai

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.

About Autohome

Autohome Inc. is an online destination for automobile consumers in China. The Company is engaged in the provision of online advertising and dealer subscription services in the People’s Republic of China (PRC). The Company, through its Websites, autohome.com.cn and che168.com, and mobile applications, delivers content to automobile buyers and owners. These services are offered to automakers and dealers, and advertising agencies that represent automakers and dealers in the automobile industry. The Company’s autohome.com.cn targets automobile consumers with a focus on new automobiles. The Company’s professionally produced content is created by editorial team and includes automobile-related articles and reviews, pricing trends in various local markets, and photos and video clips. Its database also includes new and used automobile listings and promotional information. Its dealer subscription services allow dealers to market their inventory and services through its Websites.

Receive News & Ratings for Yirendai Ltd - Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Yirendai Ltd - and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply