Contrasting VIQ Solutions (NASDAQ:VQS) & Yalla Group (NYSE:YALA)

VIQ Solutions (NASDAQ:VQS – Get Rating) and Yalla Group (NYSE:YALA – Get Rating) are both small-cap business services companies, but which is the superior business? We will contrast the two businesses based on the strength of their dividends, earnings, profitability, institutional ownership, analyst recommendations, valuation and risk.

Volatility & Risk

VIQ Solutions has a beta of -0.14, indicating that its stock price is 114% less volatile than the S&P 500. Comparatively, Yalla Group has a beta of 1.37, indicating that its stock price is 37% more volatile than the S&P 500.

Insider and Institutional Ownership

17.4% of VIQ Solutions shares are held by institutional investors. Comparatively, 4.1% of Yalla Group shares are held by institutional investors. 22.9% of VIQ Solutions shares are held by company insiders. Comparatively, 52.2% of Yalla Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current recommendations and price targets for VIQ Solutions and Yalla Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
VIQ Solutions	0	0	1	0	3.00
Yalla Group	0	0	0	0	N/A

VIQ Solutions presently has a consensus target price of $2.00, indicating a potential upside of 614.29%. Given VIQ Solutions’ higher possible upside, analysts clearly believe VIQ Solutions is more favorable than Yalla Group.

Profitability

This table compares VIQ Solutions and Yalla Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
VIQ Solutions	-23.49%	-58.79%	-27.44%
Yalla Group	27.72%	21.82%	19.27%

Earnings and Valuation

This table compares VIQ Solutions and Yalla Group’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
VIQ Solutions	$43.18 million	0.22	-$19.68 million	($0.34)	-0.82
Yalla Group	$273.14 million	1.93	$82.59 million	$0.47	7.60

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

Summary

Yalla Group beats VIQ Solutions on 10 of the 13 factors compared between the two stocks.

About VIQ Solutions

(Get Rating)

VIQ Solutions, Inc. engages in the provision of artificial intelligence driven digital voice and video capture technology and transcription solutions. Its solutions include CapturePro, MobileMic Pro, NetScribe, and aiAssist, FirstDraft and Lexel. The firm serves the law enforcement, legal, insurance, media, corporate, and government clients. The company was founded on November 10, 2004 and is headquartered in Mississauga, Canada.

About Yalla Group

(Get Rating)

Yalla Group Limited operates a voice-centric social networking and entertainment platform under the Yalla name primarily in the Middle East and North Africa region. Its 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.