Analyzing JOYY (NASDAQ:YY) & Versus Systems (NASDAQ:VS)

JOYY (NASDAQ:YY) and Versus Systems (NASDAQ:VS) are both small-cap computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, valuation, institutional ownership, earnings, dividends, analyst recommendations and profitability.

Analyst Ratings

This is a summary of recent recommendations for JOYY and Versus Systems, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
JOYY	0	3	0	0	2.00
Versus Systems	0	1	0	0	2.00

JOYY currently has a consensus price target of $39.67, indicating a potential upside of 2.50%. Versus Systems has a consensus price target of $3.00, indicating a potential upside of 88.68%. Given Versus Systems’ higher probable upside, analysts clearly believe Versus Systems is more favorable than JOYY.

Insider & Institutional Ownership

36.8% of JOYY shares are held by institutional investors. Comparatively, 60.7% of Versus Systems shares are held by institutional investors. 43.0% of JOYY shares are held by insiders. Comparatively, 20.1% of Versus Systems shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares JOYY and Versus Systems’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
JOYY	9.02%	4.64%	2.94%
Versus Systems	-9,635.29%	-330.10%	-313.75%

Risk and Volatility

JOYY has a beta of 0.25, indicating that its stock price is 75% less volatile than the S&P 500. Comparatively, Versus Systems has a beta of 1.94, indicating that its stock price is 94% more volatile than the S&P 500.

Valuation and Earnings

This table compares JOYY and Versus Systems”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
JOYY	$2.27 billion	0.97	$301.82 million	$3.31	11.69
Versus Systems	$270,000.00	16.19	-$10.51 million	N/A	N/A

JOYY has higher revenue and earnings than Versus Systems.

Summary

JOYY beats Versus Systems on 6 of the 10 factors compared between the two stocks.

About JOYY

JOYY Inc., together with its subsidiaries, operates social media platforms that offer users engaging and experience across various video-based social platforms. It operates through two segments, BIGO and All Other. The company operates Bigo Live, a social live streaming platform, that provides an interactive online stage for users to host and watch live streaming sessions, share their life moments, showcase their talents, and interact with people worldwide; Likee, a short-form video social platform, which enables users to discover, create, and share short videos, with video creation tools and personalized feeds; imo, an instant messenger platform, that provides audio and video communication services; Hago, a social networking platform that offers casual games integrating social features, such as audio and video multi-user chatrooms and 3D virtual interactive party games; and Shopline, a smart commerce platform, that provides solutions and services to enable merchants in creating and growing their brands online and reach customers through various sales channels, including e-commerce platforms, social commerce, and physical retail stores. It operates in the People's Republic of China, the United States, the Great Britain, Japan, South Korea, Australia, the Middle East, Southeast Asia, and internationally. The company was formerly known as YY Inc. and changed its name to JOYY Inc. in December 2019. JOYY Inc. was founded in 2005 and is headquartered in Singapore.

About Versus Systems

Versus Systems Inc. develops and operates a business-to-business software platform in the United States and Canada. The company offers eXtreme Engagement Online platform that is designed primarily for in-venue main-board work in stadiums and arenas; Filter Fan Cam (FFC) platform, an augmented reality filtering tool that can be used for mobile and in-venue applications; and Winfinite, which allows brands, media companies, and advertising agencies to reach out to customers directly on their mobile devices. It also offers business-to-business software platform that allows video game publishers, developers, and other interactive media content creators in-game prizing and rewards based on the completion of in-content challenges. In addition, the company provides XEO technology platform that offers online audience engagement. It primarily sells its access to platform and service offerings through its direct sales organization. Versus Systems Inc. is headquartered in Vancouver, Canada.