Yelp (NYSE:YELP) & Relx (NYSE:RELX) Critical Survey

Relx (NYSE:RELX) and Yelp (NYSE:YELP) are both computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, profitability, risk, valuation, earnings, institutional ownership and dividends.

Profitability

This table compares Relx and Yelp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Relx	N/A	N/A	N/A
Yelp	10.23%	20.33%	15.23%

Institutional & Insider Ownership

15.0% of Relx shares are owned by institutional investors. Comparatively, 90.1% of Yelp shares are owned by institutional investors. 0.0% of Relx shares are owned by insiders. Comparatively, 8.0% of Yelp shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Relx and Yelp”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Relx	$12.06 billion	4.20	$2.47 billion	N/A	N/A
Yelp	$1.41 billion	1.01	$132.85 million	$2.26	10.25

Relx has higher revenue and earnings than Yelp.

Risk & Volatility

Relx has a beta of 0.76, suggesting that its share price is 24% less volatile than the S&P 500. Comparatively, Yelp has a beta of 0.55, suggesting that its share price is 45% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Relx and Yelp, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Relx	0	2	4	2	3.00
Yelp	2	3	1	1	2.14

Yelp has a consensus price target of $31.29, suggesting a potential upside of 35.07%. Given Yelp’s higher possible upside, analysts clearly believe Yelp is more favorable than Relx.

Summary

Relx beats Yelp on 7 of the 13 factors compared between the two stocks.

About Relx

RELX Plc engages in provision of information and analytics solutions for professional and business customers across industries. It operates through the following business segments: Scientific, Technical & Medical; Risk & Business Analytics; Legal; and Exhibitions. The Scientific, Technical & Medical segment is a global information analytics business that helps institutions and professionals advance healthcare, open science, and improve performance for the benefit of humanity. The Risk & Business Analytics segment provides customers with solutions and decision tools that combine public and industry specific content with advanced technology and analytics to assist them in evaluating and predicting risk and enhancing operational efficiency. The Legal segment is a global provider of legal, regulatory and business information and analytics that helps customers increase productivity, improve decision-making and outcomes and advance the rule of law around the world. The Exhibitions segment is an event business, enhancing the effect of face-to-face through data and digital tools. The company was founded by Albert Edward Reed in 1903 and is headquartered in London, the United Kingdom.

About Yelp

Yelp Inc. operates a platform that connects consumers with local businesses in the United States and internationally. The company's platform covers various categories, including restaurants, shopping, beauty and fitness, health, and other categories, as well as home, local, auto, professional, pets, events, real estate, and financial services. It provides free and paid advertising products to businesses, which include cost-per-click advertising and multi-location Ad products, as well as enables businesses to deliver targeted advertising to large and high-intent audience; and business listing page products. The company also offers other services comprising Yelp Guest Manager, a subscription-based suite of front-of-house management tools for restaurants, nightlife and certain other venues, which include online reservations, a waitlist management solution that allows consumers to check wait times and join waitlists remotely, as well as through hostless kiosks, and seating and server rotation management tools; Yelp Knowledge program that offers business owners local analytics and insights through access to its historical data and other proprietary content; and Yelp Fusion, which offers free access to various basic information through publicly available APIs, and paid access to content and data for consumer-facing enterprise use. In addition, it provides content licensing, as well as allows third-party data providers to update and manage business listing information on behalf of businesses. Further, the company offers its products directly through its sales force; indirectly through partners; and online through its website and business app, as well as non-advertising partner arrangements. It has partnership with Grubhub for providing consumers with a service to place food orders for pickup and delivery. The company was incorporated in 2004 and is based in San Francisco, California.