zSpace (NASDAQ:ZSPC – Get Free Report) and Yalla Group (NYSE:YALA – Get Free Report) are both small-cap computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, risk, profitability, institutional ownership, dividends, earnings and analyst recommendations.
Insider and Institutional Ownership
4.7% of Yalla Group shares are held by institutional investors. 55.7% of zSpace shares are held by insiders. Comparatively, 52.2% of Yalla Group shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Earnings & Valuation
This table compares zSpace and Yalla Group”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| zSpace | $38.10 million | 0.43 | -$20.82 million | ($0.79) | -0.71 |
| Yalla Group | $339.68 million | 3.32 | $135.68 million | $0.81 | 8.82 |
Yalla Group has higher revenue and earnings than zSpace. zSpace is trading at a lower price-to-earnings ratio than Yalla Group, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of current ratings for zSpace and Yalla Group, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| zSpace | 1 | 1 | 2 | 0 | 2.25 |
| Yalla Group | 0 | 1 | 0 | 0 | 2.00 |
zSpace currently has a consensus target price of $6.00, indicating a potential upside of 971.43%. Given zSpace’s stronger consensus rating and higher probable upside, equities research analysts clearly believe zSpace is more favorable than Yalla Group.
Profitability
This table compares zSpace and Yalla Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| zSpace | -68.88% | N/A | -177.47% |
| Yalla Group | 42.29% | 20.06% | 17.73% |
Summary
Yalla Group beats zSpace on 9 of the 13 factors compared between the two stocks.
About zSpace
zSpace Technologies, Inc. is a provider of commercial augmented reality and virtual reality technology principally in the education market. The Company offers differentiated hardware along with learning software modules for K-12 science, technology, engineering, game design and mathematics applications, as well as workforce-oriented career and technical education applications. zSpace Technologies Inc. is based in SAN JOSE, Calif.
About Yalla Group
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.
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