Financial Survey: Yunji (NASDAQ:YJ) and RideNow Group (NASDAQ:RDNW)

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

Volatility and Risk

RideNow Group has a beta of 1.12, indicating that its stock price is 12% more volatile than the S&P 500. Comparatively, Yunji has a beta of 0.04, indicating that its stock price is 96% less volatile than the S&P 500.

Profitability

This table compares RideNow Group and Yunji’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
RideNow Group	-4.84%	-2,628.57%	-2.61%
Yunji	N/A	N/A	N/A

Institutional and Insider Ownership

66.1% of RideNow Group shares are held by institutional investors. 54.7% of RideNow Group shares are held by company insiders. Comparatively, 45.3% of Yunji shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and price targets for RideNow Group and Yunji, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RideNow Group	1	2	0	0	1.67
Yunji	1	0	0	0	1.00

RideNow Group currently has a consensus price target of $6.50, suggesting a potential downside of 0.31%. Given RideNow Group’s stronger consensus rating and higher probable upside, analysts plainly believe RideNow Group is more favorable than Yunji.

Earnings & Valuation

This table compares RideNow Group and Yunji”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RideNow Group	$1.08 billion	0.23	-$52.40 million	($1.39)	-4.69
Yunji	$45.33 million	0.17	-$19.06 million	($3.37)	-0.47

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

Summary

RideNow Group beats Yunji on 8 of the 13 factors compared between the two stocks.

About RideNow Group

RumbleOn, Inc. primarily operates as a powersports retailer in the United States. It operates in two segments, Powersports and Vehicle Transportation Services. The Powersports segment provides new and pre-owned motorcycles, all-terrain vehicles, utility terrain or side-by-side vehicles, personal watercraft, snowmobiles, and other powersports products. It also offers parts, apparel, accessories, finance and insurance products and services, and aftermarket products, as well as repair and maintenance services. The Vehicle Transportation Services segment provides asset-light transportation brokerage services facilitating automobile transportation. The company was formerly known as Smart Server, Inc. and changed its name to RumbleOn, Inc. in February 2017. The company was incorporated in 2013 and is based in Irving, Texas.

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.