Head to Head Contrast: Yirendai (YRD) vs. Weidai (WEI)

Yirendai (NYSE:YRD) and Weidai (NYSE:WEI) are both small-cap computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, analyst recommendations, profitability, institutional ownership, risk, dividends and earnings.

Profitability

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

Net Margins Return on Equity Return on Assets
Yirendai 18.18% 38.20% 22.42%
Weidai N/A N/A N/A



Valuation & Earnings

This table compares Yirendai and Weidai’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Yirendai $817.50 million 1.18 $140.59 million $4.48 3.54
Weidai $569.19 million 1.21 $87.50 million $1.59 6.18

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

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Yirendai and Weidai, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Yirendai 0 4 0 0 2.00
Weidai 0 0 2 0 3.00

Yirendai currently has a consensus price target of $35.00, suggesting a potential upside of 120.40%. Weidai has a consensus price target of $13.00, suggesting a potential upside of 32.38%. Given Yirendai’s higher probable upside, equities analysts plainly believe Yirendai is more favorable than Weidai.

Insider & Institutional Ownership

10.9% of Yirendai shares are held by institutional investors. Comparatively, 0.8% of Weidai shares are held by institutional investors. 42.2% of Yirendai shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Yirendai beats Weidai on 9 of the 13 factors compared between the two stocks.

Yirendai Company Profile

Yirendai Ltd. operates as an online consumer finance marketplace that connects borrowers and investors primarily in the People's Republic of China. It offers standard loan products; and fasttrack loan products through mobile applications. The company also provides investing tools. The company was founded in 2012 and is based in Beijing, the People's Republic of China. Yirendai Ltd. is a subsidiary of Creditease Holdings (Cayman) Limited.

Weidai Company Profile

Weidai Ltd., through its subsidiaries, provides auto-backed financing solutions in the People's Republic of China. Its auto-backed financing platform connects borrowers primarily mall and micro enterprise owners with online investors and institutional funding partners. The company was founded in 2011 and is headquartered in Hangzhou, the People's Republic of China.

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