Comparing Bitauto (NYSE:BITA) and YY (NYSE:YY)

Bitauto (NYSE:BITA) and YY (NASDAQ:YY) are both computer and technology 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.

Valuation & Earnings

This table compares Bitauto and YY’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Bitauto $1.54 billion 0.74 -$169.25 million ($0.45) -35.04
YY $3.67 billion 1.82 $494.88 million $3.89 21.31

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

Volatility & Risk

Bitauto has a beta of 0.68, meaning that its stock price is 32% less volatile than the S&P 500. Comparatively, YY has a beta of 1.18, meaning that its stock price is 18% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and target prices for Bitauto and YY, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bitauto 0 0 0 0 N/A
YY 0 0 9 0 3.00

YY has a consensus price target of $103.00, indicating a potential upside of 24.25%. Given YY’s higher possible upside, analysts clearly believe YY is more favorable than Bitauto.

Profitability

This table compares Bitauto and YY’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Bitauto -25.73% -7.96% -3.20%
YY 27.75% 5.46% 4.12%

Insider and Institutional Ownership

26.9% of Bitauto shares are owned by institutional investors. Comparatively, 53.9% of YY shares are owned by institutional investors. 17.0% of Bitauto shares are owned by company insiders. Comparatively, 43.0% of YY 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.

Summary

YY beats Bitauto on 13 of the 13 factors compared between the two stocks.

About Bitauto

Bitauto Holdings Limited, through its subsidiaries, provides Internet content and marketing services, and transaction services for the automobile industry in the People's Republic of China. It operates in three segments: Advertising and Subscription Business, Transaction Services Business, and Digital Marketing Solutions Business. The Advertising and Subscription Business segment offers advertising services, including automobile pricing and promotional information, specifications, reviews, and consumer feedback to automakers through its bitauto.com Website and related mobile applications. It also provides transaction-focused online advertisement and promotional services for automakers, automobile dealers, auto finance partners, and insurance companies; and Web-based and mobile-based integrated digital marketing solutions to automobile dealers. The Transaction Services Business segment operates an online automobile retail transaction platform, which provides transaction platform and self-operated financing services. The Digital Marketing Solutions Business segment offers one-stop digital marketing solutions, including Website creation and maintenance, online public relation, online marketing campaign, advertising agency, big data application, and digital image creation services for automakers. The company also distributes its dealer customers' automobile pricing and promotional information through its Internet service provider partners. Bitauto Holdings Limited was founded in 2000 and is headquartered in Beijing, the People's Republic of China.

About YY

YY Inc., through its subsidiaries, engages in the live streaming business in the People's Republic of China. The company operates YY Live platform, an online music and entertainment live streaming service; Huya platform, a live streaming platform, including online games, console games, mobile games, entertainments, sports, etc.; and Bigo, a leading short-form video social platform. Its platforms enable users to interact in live online group activities through voice, text, and video. The company's primary product is YY Client, which enables users to engage in live streaming online; and offers access to user-created online social activity groups. It also provides game center on YY Client, including a game lobby and VIP game access. In addition, the company offers YY Live APP and Huya APP mobile applications to provide various live streaming contents to its users through mobile operating systems. Further, it develops and operates YY.com and Huya.com, as well as other personal computer (PC) Websites, such as 100.com, Duowan.com, etc. that enable users to conduct real-time interactions and watch live streaming content through Web browsers on PC and mobile, without requiring any downloads or installations. Additionally, the company offers online advertising and promotion services. YY Inc. was founded in 2005 and is based in Guangzhou, the People's Republic of China.

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