Yalla Group (YALA) vs. Its Competitors Critical Review

Yalla Group (NYSE:YALA) is one of 192 public companies in the “Interactive Media & Services” industry, but how does it weigh in compared to its peers? We will compare Yalla Group to related companies based on the strength of its analyst recommendations, earnings, dividends, institutional ownership, profitability, valuation and risk.

Valuation & Earnings

This table compares Yalla Group and its peers top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Yalla Group	$341.94 million	$149.84 million	7.14
Yalla Group Competitors	$13.72 billion	$3.48 billion	19.72

Yalla Group’s peers have higher revenue and earnings than Yalla Group. Yalla Group is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Yalla Group and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Yalla Group	40.78%	16.82%	15.14%
Yalla Group Competitors	-349.38%	-23.09%	4.03%

Insider & Institutional Ownership

4.7% of Yalla Group shares are owned by institutional investors. Comparatively, 41.2% of shares of all “Interactive Media & Services” companies are owned by institutional investors. 52.2% of Yalla Group shares are owned by company insiders. Comparatively, 24.0% of shares of all “Interactive Media & Services” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings and price targets for Yalla Group and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Yalla Group	0	1	0	0	2.00
Yalla Group Competitors	1438	6009	11545	441	2.57

As a group, “Interactive Media & Services” companies have a potential upside of 34.74%. Given Yalla Group’s peers stronger consensus rating and higher possible upside, analysts clearly believe Yalla Group has less favorable growth aspects than its peers.

Risk & Volatility

Yalla Group has a beta of 0.49, meaning that its share price is 51% less volatile than the S&P 500. Comparatively, Yalla Group’s peers have a beta of 1.88, meaning that their average share price is 88% more volatile than the S&P 500.

Summary

Yalla Group peers beat Yalla Group on 9 of the 13 factors compared.

Yalla Group Company Profile

Yalla Group Limited operates a social networking and gaming platform primarily in the Middle East and North Africa region. It provides mobile applications, including Yalla, a voice-centric group chat platform; and Yalla Ludo, a casual gaming application. The company’s platform offers group chatting and games services; and sells virtual items, as well as provides upgrade services. The company was formerly known as FYXTech Corporation. Yalla Group Limited was founded in 2016 and is headquartered in Dubai, the United Arab Emirates.