Verisk Analytics (NASDAQ:VRSK) and YY (NASDAQ:YY) are both business services companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, valuation, profitability and risk.
Verisk Analytics pays an annual dividend of $1.00 per share and has a dividend yield of 0.6%. YY does not pay a dividend. Verisk Analytics pays out 24.3% of its earnings in the form of a dividend.
Earnings & Valuation
This table compares Verisk Analytics and YY’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Verisk Analytics||$2.40 billion||10.64||$598.70 million||$4.11||37.94|
|YY||$2.29 billion||1.48||$321.29 million||$7.13||7.52|
Verisk Analytics has higher revenue and earnings than YY. YY is trading at a lower price-to-earnings ratio than Verisk Analytics, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
93.2% of Verisk Analytics shares are held by institutional investors. Comparatively, 60.4% of YY shares are held by institutional investors. 2.7% of Verisk Analytics shares are held by insiders. Comparatively, 43.0% of YY shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
This table compares Verisk Analytics and YY’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of current recommendations for Verisk Analytics and YY, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Verisk Analytics presently has a consensus price target of $138.89, suggesting a potential downside of 10.92%. YY has a consensus price target of $90.51, suggesting a potential upside of 68.74%. Given YY’s stronger consensus rating and higher possible upside, analysts clearly believe YY is more favorable than Verisk Analytics.
Risk and Volatility
Verisk Analytics has a beta of 0.76, meaning that its stock price is 24% less volatile than the S&P 500. Comparatively, YY has a beta of 1.21, meaning that its stock price is 21% more volatile than the S&P 500.
About Verisk Analytics
Verisk Analytics, Inc. provides data analytics solutions in the United States and internationally. It provides predictive analytics and decision support solutions to customers in rating, underwriting, claims, catastrophe and weather risk, natural resources intelligence, economic forecasting, and various other fields. The company operates through three segments: Insurance, Energy and Specialized Markets, and Financial Services. The Insurance segment focuses on the prediction of loss, selection and pricing of risk, and compliance with their reporting requirements for property and casualty customers. It also develops predictive models to forecast scenarios and produce standard and customized analytics that help its customers to manage their businesses, including detecting fraud before and after a loss event, and quantifying losses. The Energy and Specialized Markets segment provides data analytics for the natural resources value chain, including energy, chemicals, metals, mining, power, and renewables sectors; research and consulting services focusing on exploration strategies and screening, asset development and acquisition, commodity markets, and corporate analysis; and consultancy services in the areas of business environment, business improvement, business strategies, commercial advisory, and transaction support, as well as analysis and advice on assets, companies, governments, and markets. The Financial Services segment offers algorithms, business intelligence, and customized analytic services to financial institutions, payment networks and processors, alternative lenders, regulators, and merchants. The company was founded in 1971 and is headquartered in Jersey City, New Jersey.
YY Inc., through its subsidiaries, engages in the live streaming business in the People’s Republic of China. The company operates YY Live platform, an online music and entertainment live streaming service; Huya platform, a live streaming platform, including online games, console games, mobile games, entertainments, sports, etc.; and Bigo, a leading short-form video social platform. Its platforms enable users to interact in live online group activities through voice, text, and video. The company’s primary product is YY Client, which enables users to engage in live streaming online; and offers access to user-created online social activity groups. It also provides game center on YY Client, including a game lobby and VIP game access. In addition, the company offers YY Live APP and Huya APP mobile applications to provide various live streaming contents to its users through mobile operating systems. Further, it develops and operates YY.com and Huya.com, as well as other personal computer (PC) Websites, such as 100.com, Duowan.com, etc. that enable users to conduct real-time interactions and watch live streaming content through Web browsers on PC and mobile, without requiring any downloads or installations. Additionally, the company offers online advertising and promotion services. YY Inc. was founded in 2005 and is based in Guangzhou, the People’s Republic of China.
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