Comparing of Weibo Corporation (WB) and YY Inc. (NASDAQ:YY)

Weibo Corporation (NASDAQ:WB) and YY Inc. (NASDAQ:YY) have been rivals in the Internet Information Providers for quite some time. Below is a review of each business including various aspects such as analyst recommendations, institutional ownership, profitability, risk, dividends, earnings and valuation.

Earnings & Valuation

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Weibo Corporation 1.61B 8.60 536.30M 2.33 26.23
YY Inc. N/A 0.00 N/A 4.18 15.04

Table 1 demonstrates Weibo Corporation and YY Inc.’s top-line revenue, earnings per share and valuation. The business with a higher price-to-earnings ratio is currently more expensive of the two stocks. Weibo Corporation is currently more expensive than YY Inc., because it’s trading at a higher price-to-earnings ratio.

Profitability

Table 2 hightlights the return on assets, return on equity and net margins of the two companies.

Net Margins Return on Equity Return on Assets
Weibo Corporation 33.31% 38.8% 19%
YY Inc. 0.00% 12.1% 8.6%

Volatility and Risk

A beta of 2.38 shows that Weibo Corporation is 138.00% more volatile than Standard and Poor’s 500. YY Inc. has a 0.93 beta and it is 7.00% less volatile than Standard and Poor’s 500.

Liquidity

Weibo Corporation’s Current Ratio is 4 while its Quick Ratio is 4. On the competitive side is, YY Inc. which has a 5.2 Current Ratio and a 5.2 Quick Ratio. YY Inc. is better positioned to pay off short and long-term obligations compared to Weibo Corporation.

Analyst Ratings

In next table is given Weibo Corporation and YY Inc.’s ratings and recommendations.

Sell Ratings Hold Ratings Buy Ratings Rating Score
Weibo Corporation 0 3 1 2.25
YY Inc. 0 3 1 2.25

Weibo Corporation has an average price target of $77.25, and a 23.98% upside potential. Meanwhile, YY Inc.’s average price target is $89, while its potential upside is 33.29%. Based on the results given earlier, YY Inc. is looking more favorable than Weibo Corporation, analysts belief.

Institutional and Insider Ownership

Weibo Corporation and YY Inc. has shares owned by institutional investors as follows: 38.7% and 82.8%. Insiders owned roughly 7.41% of Weibo Corporation’s shares. Competitively, insiders own roughly 2.05% of YY Inc.’s shares.

Performance

Here are the Weekly, Monthly, Quarterly, Half Yearly, Yearly and YTD Performance of both pretenders.

Performance (W) Performance (M) Performance (Q) Performance (HY) Performance (Y) Performance (YTD)
Weibo Corporation -3.86% -5.95% -13.36% -41.04% -39.21% -40.83%
YY Inc. -7.58% -10.41% -10.88% -44.36% -42.61% -44.36%

For the past year Weibo Corporation has stronger performance than YY Inc.

Summary

Weibo Corporation beats YY Inc. on 9 of the 12 factors.

Weibo Corporation operates as a social media platform for people to create, distribute, and discover Chinese-language content. It operates through two segments, Advertising and Marketing Services, and Other Services. The company offers self-expression products that enable its users to express themselves on its platform; social products to promote social interaction between users on its platform; discovery products to help users discover content on its platform; and notifications to notify users on Weibo account activities through SMS or push notification on their device. It also provides third-party online games, including role playing, card, strategy, and real life simulation games, as well as various services and functions to VIP members; and develops mobile apps comprising Weibo Headlines that aggregates news and information from Weibo and other online sources, as well as Weibo Weather, a weather app. In addition, the company offers advertising and marketing solutions, such as social display ads; and promoted feeds, accounts, and trends to enable its customers to promote their brands and conduct marketing activities. Further, it provides products that allow its platform partners to link their Websites and mobile apps to its platform, enabling their users to share content to Weibo; application programming interfaces, which allow third-party developers to build apps to serve individual and organization users; Weibo Credit that allows its users to purchase in-game virtual items and other fee-based services on Weibo. The company was formerly known as T.CN Corporation and changed its name to Weibo Corporation in 2012. The company was founded in 2009 and is headquartered in Beijing, China. Weibo Corporation is a subsidiary of SINA Corporation.

YY Inc., through its subsidiaries, operates a live streaming platform in the PeopleÂ’s Republic of China. It engages users to interact in live online group activities through voice, text, and video, as well as to create and organize groups of various sizes to discover and participate in a range of online activities, including music shows, online games, dating shows, live game broadcasting, and e-learning. The companyÂ’s primary product is YY Client, which enables users to engage in live interactions online; and provides access to user-created online social activities groups. It also offers Web-based YY that enables users to conduct real-time interactions and watch live streaming content on the Web browsers without any downloads or installations; and YY Live, a music and entertainment mobile application. In addition, the company operates Duowan.com, a game media Website that provides access to and interactive resources for online games; and YY.com, Huya.com, and Zhiniu8.com to browse and watch various categories of live broadcasts and other contents on the YY platform, as well as 100.com that provides various online education contents. Further, it is involved in the online advertising and software development activities. YY Inc. was founded in 2005 and is headquartered in Guangzhou, the PeopleÂ’s Republic of China.

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