Yirendai (NYSE:YRD – Get Free Report) and Katapult (NASDAQ:KPLT – Get Free Report) are both small-cap finance companies, but which is the better stock? We will compare the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, dividends, analyst recommendations and valuation.
Profitability
This table compares Yirendai and Katapult’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Yirendai | -14.35% | -7.58% | -5.21% |
| Katapult | 3.60% | -26.41% | 10.86% |
Analyst Recommendations
This is a summary of current ratings and recommmendations for Yirendai and Katapult, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Yirendai | 1 | 0 | 0 | 0 | 1.00 |
| Katapult | 1 | 0 | 0 | 0 | 1.00 |
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Yirendai | $817.84 million | 0.11 | $7.80 million | ($1.18) | -0.83 |
| Katapult | $291.76 million | 0.16 | $1.37 million | $1.37 | 6.93 |
Yirendai has higher revenue and earnings than Katapult. Yirendai is trading at a lower price-to-earnings ratio than Katapult, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
2.0% of Yirendai shares are owned by institutional investors. Comparatively, 26.8% of Katapult shares are owned by institutional investors. 42.2% of Yirendai shares are owned by insiders. Comparatively, 8.0% of Katapult shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Volatility & Risk
Yirendai has a beta of 1.14, suggesting that its stock price is 14% more volatile than the S&P 500. Comparatively, Katapult has a beta of 1.55, suggesting that its stock price is 55% more volatile than the S&P 500.
Summary
Katapult beats Yirendai on 7 of the 11 factors compared between the two stocks.
About Yirendai
Yiren Digital Ltd. provides financial services through an AI-powered platform in China. Its platform provides a suite of financial and lifestyle services. The company offers financial services, which provides a portfolio of loan products to borrowers; insurance brokerage services; and consumption and lifestyle services, including non-financial products and services to meet various consumer needs. It supports clients at various growth stages, addressing financing needs arising from consumption and production activities, and augmenting the well-being and security of individuals, families, and businesses. The company was formerly known as Yirendai Ltd. and changed its name to Yiren Digital Ltd. in September 2019. Yiren Digital Ltd. was founded in 2012 and is based in Beijing, the People's Republic of China. Yiren Digital Ltd. operates as a subsidiary of CreditEase Holdings (Cayman) Limited.
About Katapult
Katapult Holdings, Inc., an e-commerce focused financial technology company, provides e-commerce point-of-sale lease-purchase options for nonprime consumers in the United States. The company's technology platform provides nonprime consumers with a lease purchase option to enable them to obtain durable goods from its network of e-commerce retailers. It also offers Katapult Pay, a one-time use virtual card technology that makes lease purchasing and transactions. The company was formerly known as Cognical Holdings, Inc. and changed its name to Katapult Holdings, Inc. in February 2020. The company is headquartered in Plano, Texas.
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