Reviewing Yunji (NASDAQ:YJ) and Hour Loop (NASDAQ:HOUR)

Yunji (NASDAQ:YJ) and Hour Loop (NASDAQ:HOUR) are both small-cap retail/wholesale companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, profitability, earnings, risk, analyst recommendations, institutional ownership and dividends.

Profitability

This table compares Yunji and Hour Loop’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Yunji	N/A	N/A	N/A
Hour Loop	0.56%	12.49%	3.28%

Analyst Recommendations

This is a breakdown of current ratings and price targets for Yunji and Hour Loop, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Yunji	1	0	0	0	1.00
Hour Loop	1	0	0	0	1.00

Valuation & Earnings

This table compares Yunji and Hour Loop”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Yunji	$57.22 million	0.16	-$16.86 million	($3.44)	-0.53
Hour Loop	$138.25 million	0.54	$660,000.00	$0.03	71.00

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

Institutional and Insider Ownership

0.3% of Hour Loop shares are owned by institutional investors. 45.3% of Yunji shares are owned by insiders. Comparatively, 95.0% of Hour Loop shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Risk and Volatility

Yunji has a beta of 0.42, meaning that its share price is 58% less volatile than the S&P 500. Comparatively, Hour Loop has a beta of 1.49, meaning that its share price is 49% more volatile than the S&P 500.

Summary

Hour Loop beats Yunji on 11 of the 11 factors compared between the two stocks.

About Yunji

Yunji Inc., together with its subsidiaries, operates a social e-commerce platform in the People's Republic of China. It offers a range of product categories that cater various daily needs of users and their households, including beauty and personal care, household goods, cloths, food and fresh produce, computer and electronics, apparel, bags and cases, baby and maternity products, and home appliances. The company was founded in 2015 and is headquartered in Hangzhou, the People's Republic of China.

About Hour Loop

Hour Loop, Inc., an online retailer, engages in e-commerce retailing in the United States. The company sells products in various categories, including home/garden décor, toys, kitchenware, apparels, and electronics products. It sells its products through hourloop.com, as well as third-party marketplaces. Hour Loop, Inc. was founded in 2013 and is headquartered in Redmond, Washington.