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

Institutional and Insider Ownership

13.6% of Trivago N.V. ADS shares are held by institutional investors. Comparatively, 6.9% of Yirendai shares are held by institutional investors. 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 Trivago N.V. ADS and Yirendai’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Trivago N.V. ADS N/A N/A N/A
Yirendai 32.37% 80.79% 36.20%

Valuation and Earnings

This table compares Trivago N.V. ADS and Yirendai’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Trivago N.V. ADS $1.18 billion 3.25 $31.99 million N/A N/A
Yirendai $635.79 million 4.28 $213.72 million $3.26 13.97

Yirendai has higher revenue, but lower earnings than Trivago N.V. ADS.

Dividends

Yirendai pays an annual dividend of $1.48 per share and has a dividend yield of 3.3%. Trivago N.V. ADS does not pay a dividend. Yirendai pays out 45.4% of its earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of recent recommendations for Trivago N.V. ADS and Yirendai, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Trivago N.V. ADS 0 9 1 0 2.10
Yirendai 1 0 1 0 2.00

Trivago N.V. ADS currently has a consensus price target of $16.70, suggesting a potential upside of 52.37%. Yirendai has a consensus price target of $29.00, suggesting a potential downside of 36.31%. Given Trivago N.V. ADS’s stronger consensus rating and higher possible upside, equities analysts clearly believe Trivago N.V. ADS is more favorable than Yirendai.

Summary

Yirendai beats Trivago N.V. ADS on 6 of the 11 factors compared between the two stocks.

About Trivago N.V. ADS

Trivago NV is a company based in the Netherlands that operates an online hotel search platform. The platform allows users to search for, compare and book hotels. It gathers information from various third parties’ platforms and provides information about the hotel, pictures, ratings, reviews and filters, such as price, location and extra options. The Company offers access to approximately 1.3 million hotels in over 190 countries via more than 50 localized websites and applications in various languages. The Company also offers marketing tools and services to hotels and hotel chains, as well as to online travel agencies and advertisers, among others. Its principal executive offices are located in Germany.

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.

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