Yirendai (NYSE:YRD) versus KE (NYSE:BEKE) Head-To-Head Analysis

KE (NYSE:BEKE) and Yirendai (NYSE:YRD) are both computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their earnings, profitability, analyst recommendations, valuation, dividends, risk and institutional ownership.

Insider & Institutional Ownership

39.3% of KE shares are held by institutional investors. Comparatively, 2.0% of Yirendai shares are held by institutional investors. 6.8% of KE shares are held by insiders. Comparatively, 42.2% of Yirendai shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Volatility & Risk

KE has a beta of -0.33, indicating that its stock price is 133% less volatile than the S&P 500. Comparatively, Yirendai has a beta of 1.13, indicating that its stock price is 13% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
KE	3.77%	5.47%	3.10%
Yirendai	-14.35%	-7.58%	-5.21%

Earnings & Valuation

This table compares KE and Yirendai”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
KE	$13.52 billion	1.33	$428.13 million	$0.42	38.37
Yirendai	$817.84 million	0.14	$7.80 million	($1.18)	-1.08

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

Analyst Recommendations

This is a summary of current ratings for KE and Yirendai, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
KE	0	1	6	0	2.86
Yirendai	1	0	0	0	1.00

KE presently has a consensus target price of $23.07, suggesting a potential upside of 43.14%. Given KE’s stronger consensus rating and higher probable upside, equities research analysts clearly believe KE is more favorable than Yirendai.

Dividends

KE pays an annual dividend of $0.23 per share and has a dividend yield of 1.4%. Yirendai pays an annual dividend of $0.20 per share and has a dividend yield of 15.7%. KE pays out 54.8% of its earnings in the form of a dividend. Yirendai pays out -16.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Yirendai is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

KE beats Yirendai on 12 of the 16 factors compared between the two stocks.

About KE

KE Holdings Inc., through its subsidiaries, engages in operating an integrated online and offline platform for housing transactions and services in the People's Republic of China. It operates through four segments: Existing Home Transaction Services, New Home Transaction Services, Home Renovation and Furnishing, and Emerging and Other Services. The company operates Beike, an integrated online and offline platform for housing transactions and services; Lianjia, a real estate brokerage branded store; Agent Cooperation Network, an operating system that fosters reciprocity and bonding among various service providers; and software-as-a-service systems. It also owns the Deyou brand for connected brokerage stores; and other brands. In addition, the company offers contract, secure payment, escrow, and other services. KE Holdings Inc. was founded in 2001 and is headquartered in Beijing, the People's Republic of China.

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.