Critical Comparison: Yirendai (NYSE:YRD) versus Viomi Technology (NASDAQ:VIOT)

Yirendai (NYSE:YRD) and Viomi Technology (NASDAQ:VIOT) are both small-cap computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, risk, institutional ownership, valuation, dividends, analyst recommendations and earnings.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Yirendai and Viomi Technology, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Yirendai	1	0	0	0	1.00
Viomi Technology	1	0	0	0	1.00

Institutional & Insider Ownership

2.0% of Yirendai shares are held by institutional investors. Comparatively, 1.2% of Viomi Technology shares are held by institutional investors. 42.2% of Yirendai shares are held by company insiders. Comparatively, 34.3% of Viomi Technology shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Risk and Volatility

Yirendai has a beta of 1.12, suggesting that its stock price is 12% more volatile than the S&P 500. Comparatively, Viomi Technology has a beta of 0.38, suggesting that its stock price is 62% less volatile than the S&P 500.

Valuation & Earnings

This table compares Yirendai and Viomi Technology”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Yirendai	$817.84 million	0.13	$7.80 million	$0.03	40.83
Viomi Technology	$347.23 million	0.18	$20.26 million	N/A	N/A

Viomi Technology has lower revenue, but higher earnings than Yirendai.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Yirendai	0.31%	0.18%	0.13%
Viomi Technology	N/A	N/A	N/A

Summary

Yirendai beats Viomi Technology on 7 of the 9 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 Viomi Technology

Viomi Technology Co., Ltd, through its subsidiaries, develops and sells Internet-of-things-enabled (IoT-enabled) smart home products in the People's Republic of China. The company offers IoT-enabled smart home products, including smart water purification systems; smart kitchen products, such as refrigerators, oven steamers, dishwashers, range hoods, and gas stoves; and other smart products comprising air conditioning systems, washing machines, water heaters, smart water kettles, sweeper robots, smart locks, and other smart devices, as well as blenders. It also provides a suite of complementary consumable products and small appliances, such as portable fans, rice cookers, water quality meters, water filter pitchers, stainless-steel insulated water bottles, smart toilet, and food waste disposals; and value-added services. The company sells its products directly to consumers through its online platform, Viomi mobile app, and e-commerce channels, including Youpin, JD.com, Tmall, Pinduoduo, and others, as well as offline experience stores. Viomi Technology Co., Ltd has a strategic partnership with Xiaomi Corporation. The company was founded in 2014 and is headquartered in Guangzhou, China.