Comparing Rediff.com India (OTCMKTS:REDFY) & Yelp (NYSE:YELP)

Yelp (NYSE:YELP) and Rediff.com India (OTCMKTS:REDFY) are both computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, risk, institutional ownership, profitability, valuation and earnings.

Valuation and Earnings

This table compares Yelp and Rediff.com India”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Yelp	$1.46 billion	0.93	$145.60 million	$2.25	9.88
Rediff.com India	N/A	N/A	N/A	N/A	N/A

Yelp has higher revenue and earnings than Rediff.com India.

Institutional and Insider Ownership

90.1% of Yelp shares are owned by institutional investors. 8.0% of Yelp shares are owned by insiders. Comparatively, 70.7% of Rediff.com India shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Yelp and Rediff.com India, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Yelp	3	4	1	0	1.75
Rediff.com India	0	0	0	0	0.00

Yelp currently has a consensus price target of $28.50, indicating a potential upside of 28.20%. Given Yelp’s stronger consensus rating and higher possible upside, research analysts clearly believe Yelp is more favorable than Rediff.com India.

Risk and Volatility

Yelp has a beta of 0.55, meaning that its share price is 45% less volatile than the S&P 500. Comparatively, Rediff.com India has a beta of 16.56, meaning that its share price is 1,556% more volatile than the S&P 500.

Profitability

This table compares Yelp and Rediff.com India’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Yelp	9.94%	19.96%	14.88%
Rediff.com India	N/A	N/A	N/A

Summary

Yelp beats Rediff.com India on 8 of the 10 factors compared between the two stocks.

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.

About Rediff.com India

Rediff.com India Limited engages in the online business in India and to the global Indian community. The company delivers news and information, enterprise email services, online shopping marketplace, and internet-based local TV advertising platform; and online advertising services. Its websites consist of information relating to sports and cricket; life style and movies; content on news, business, and finance; and search facilities, as well as a range of community features, including as e-mail and shopping. The company delivers its services on PCs, tablets, and various mobile platforms. Rediff.com India Limited was incorporated in 1996 and is headquartered in Mumbai, India.