Head-To-Head Analysis: KE (NYSE:BEKE) vs. Yirendai (NYSE:YRD)

Yirendai (NYSE:YRD) and KE (NYSE:BEKE) are both computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, earnings, profitability, risk, analyst recommendations, valuation and dividends.

Valuation and Earnings

This table compares Yirendai and KE”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Yirendai	$817.84 million	0.13	$7.80 million	($1.18)	-1.05
KE	$90.14 billion	0.22	$428.13 million	$0.42	41.44

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

Risk and Volatility

Yirendai has a beta of 1.13, suggesting that its stock price is 13% more volatile than the S&P 500. Comparatively, KE has a beta of -0.33, suggesting that its stock price is 133% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and price targets for Yirendai and KE, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Yirendai	1	0	0	0	1.00
KE	0	1	6	0	2.86

KE has a consensus price target of $23.07, indicating a potential upside of 32.53%. Given KE’s stronger consensus rating and higher possible upside, analysts plainly believe KE is more favorable than Yirendai.

Dividends

Yirendai pays an annual dividend of $0.20 per share and has a dividend yield of 16.1%. KE pays an annual dividend of $0.22 per share and has a dividend yield of 1.3%. Yirendai pays out -16.9% of its earnings in the form of a dividend. KE pays out 52.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Yirendai is clearly the better dividend stock, given its higher yield and lower payout ratio.

Insider & Institutional Ownership

2.0% of Yirendai shares are owned by institutional investors. Comparatively, 39.3% of KE shares are owned by institutional investors. 42.2% of Yirendai shares are owned by company insiders. Comparatively, 6.8% of KE shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Yirendai	-14.35%	-7.58%	-5.21%
KE	3.77%	5.47%	3.10%

Summary

KE beats Yirendai on 12 of the 16 factors compared between the two stocks.

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.

About KE

KE Holdings Inc., through its subsidiaries, engages in operating an integrated online and offline platform for housing transactions and services in the People's Republic of China. It operates through four segments: Existing Home Transaction Services, New Home Transaction Services, Home Renovation and Furnishing, and Emerging and Other Services. The company operates Beike, an integrated online and offline platform for housing transactions and services; Lianjia, a real estate brokerage branded store; Agent Cooperation Network, an operating system that fosters reciprocity and bonding among various service providers; and software-as-a-service systems. It also owns the Deyou brand for connected brokerage stores; and other brands. In addition, the company offers contract, secure payment, escrow, and other services. KE Holdings Inc. was founded in 2001 and is headquartered in Beijing, the People's Republic of China.