Yirendai (NYSE:YRD) and Senmiao Technology (NASDAQ:AIHS) are both small-cap computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their risk, analyst recommendations, earnings, institutional ownership, valuation, dividends and profitability.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Yirendai and Senmiao Technology, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Yirendai 0 4 0 0 2.00
Senmiao Technology 0 0 0 0 N/A

Yirendai presently has a consensus price target of $35.00, suggesting a potential upside of 176.90%. Given Yirendai’s higher probable upside, equities research analysts plainly believe Yirendai is more favorable than Senmiao Technology.

Dividends

Yirendai pays an annual dividend of $0.26 per share and has a dividend yield of 2.1%. Senmiao Technology does not pay a dividend. Yirendai pays out 7.5% of its earnings in the form of a dividend.

Valuation and Earnings

This table compares Yirendai and Senmiao Technology’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Yirendai $852.00 million 0.90 $210.83 million $3.45 3.66
Senmiao Technology $500,000.00 318.31 -$9.85 million N/A N/A

Yirendai has higher revenue and earnings than Senmiao Technology.

Profitability

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

Net Margins Return on Equity Return on Assets
Yirendai 18.56% 40.40% 21.08%
Senmiao Technology -1,960.66% -98.14% -83.26%

Institutional & Insider Ownership

11.0% of Yirendai shares are owned by institutional investors. Comparatively, 0.2% of Senmiao Technology shares are owned by institutional investors. 42.2% of Yirendai shares are owned by insiders. Comparatively, 45.2% of Senmiao Technology shares are owned by 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.

Summary

Yirendai beats Senmiao Technology on 8 of the 11 factors compared between the two stocks.

Yirendai Company Profile

Yirendai Ltd. operates as an online consumer finance marketplace that connects borrowers and investors primarily in the People's Republic of China. It offers standard loan products; and fasttrack loan products through mobile applications. The company also provides investing tools. The company was founded in 2012 and is based in Beijing, the People's Republic of China. Yirendai Ltd. is a subsidiary of Creditease Holdings (Cayman) Limited.

Senmiao Technology Company Profile

Senmiao Technology Limited, through its interest in Sichuan Senmiao Ronglian Technology Co., Ltd., operates an online lending platform connecting Chinese investors with individual and small- to-medium-sized enterprise borrowers in China. Its platform offers access to credit to borrowers and creditors, and investment returns for investors. The company was incorporated in 2017 and is based in Chengdu, China.

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