Comparing Crexendo (NASDAQ:CXDO) and Yirendai (NYSE:YRD)

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

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Crexendo and Yirendai, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Crexendo	0	0	4	0	3.00
Yirendai	0	0	0	0	0.00

Crexendo currently has a consensus target price of $8.38, suggesting a potential upside of 42.19%. Given Crexendo’s stronger consensus rating and higher possible upside, research analysts clearly believe Crexendo is more favorable than Yirendai.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Crexendo	3.86%	10.55%	8.48%
Yirendai	22.48%	14.33%	10.65%

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Crexendo	$62.61 million	2.73	$1.68 million	$0.08	73.63
Yirendai	$795.41 million	0.68	$216.77 million	$2.14	2.90

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

Insider & Institutional Ownership

9.5% of Crexendo shares are owned by institutional investors. Comparatively, 2.0% of Yirendai shares are owned by institutional investors. 56.2% of Crexendo shares are owned by insiders. Comparatively, 42.2% of Yirendai shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Risk and Volatility

Crexendo has a beta of 1.15, suggesting that its share price is 15% more volatile than the S&P 500. Comparatively, Yirendai has a beta of 0.72, suggesting that its share price is 28% less volatile than the S&P 500.

Summary

Crexendo beats Yirendai on 8 of the 14 factors compared between the two stocks.

About Crexendo

Crexendo, Inc. provides cloud communication platform and services, video collaboration, and managed IT services for businesses in the United States and internationally. It operates through two segments, Cloud Telecommunications Services and Software Solutions. The Cloud Telecommunications segment provides telecommunications services that transmit calls using Internet protocol (IP) or cloud technology, which converts voice signals into digital data packets for transmission over the Internet or cloud; and broadband Internet services, as well as develops end user portals for account and license management, and billing and customer support. This segment is also involved in the sale and lease of cloud telecommunications equipment. In addition, it offers hardware, software, and unified communication solutions for businesses using IP or cloud technology over high-speed internet connection through various devices and user interfaces, such as desktop phones and/or mobile, and desktop applications under the Crexendo brand name. The Software Solutions segment provides a suite of unified communications, collaboration, video conferencing, and contact center solutions. This segment also offers SNAPsolution, an IP-based platform; SNAPaccel, a software-as-a-service based software; subscription maintenance and support services; and professional services, including consulting, technical support, resident engineer, design, and installation services. The company was formerly known as iMergent, Inc. and changed its name to Crexendo, Inc. in May 2011. Crexendo, Inc. was incorporated in 1995 and is based in Tempe, Arizona.

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.