Financial Analysis: JOYY (YY) and Its Competitors

JOYY (NASDAQ:YY) is one of 192 public companies in the “Interactive Media & Services” industry, but how does it contrast to its rivals? We will compare JOYY to similar companies based on the strength of its institutional ownership, profitability, analyst recommendations, valuation, earnings, dividends and risk.

Dividends

JOYY pays an annual dividend of $3.72 per share and has a dividend yield of 4.6%. JOYY pays out -120.0% of its earnings in the form of a dividend. As a group, “Interactive Media & Services” companies pay a dividend yield of 18.1% and pay out 4.9% of their earnings in the form of a dividend.

Volatility and Risk

JOYY has a beta of 0.21, suggesting that its stock price is 79% less volatile than the S&P 500. Comparatively, JOYY’s rivals have a beta of 1.84, suggesting that their average stock price is 84% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and price targets for JOYY and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
JOYY	0	0	2	0	3.00
JOYY Competitors	1436	5986	11521	441	2.57

JOYY currently has a consensus price target of $66.00, suggesting a potential downside of 17.83%. As a group, “Interactive Media & Services” companies have a potential upside of 40.42%. Given JOYY’s rivals higher possible upside, analysts clearly believe JOYY has less favorable growth aspects than its rivals.

Insider & Institutional Ownership

36.8% of JOYY shares are owned by institutional investors. Comparatively, 41.2% of shares of all “Interactive Media & Services” companies are owned by institutional investors. 43.0% of JOYY shares are owned by company insiders. Comparatively, 24.0% of shares of all “Interactive Media & Services” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares JOYY and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
JOYY	9.02%	4.64%	2.96%
JOYY Competitors	-349.33%	-22.40%	4.21%

Valuation and Earnings

This table compares JOYY and its rivals gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
JOYY	$2.24 billion	$301.82 million	-25.91
JOYY Competitors	$13.10 billion	$3.45 billion	20.19

JOYY’s rivals have higher revenue and earnings than JOYY. JOYY is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Summary

JOYY rivals beat JOYY on 8 of the 15 factors compared.

JOYY Company Profile

JOYY Inc., together with its subsidiaries, operates social media platforms that offer users engaging and experience across various video-based social platforms. It operates through two segments, BIGO and All Other. The company operates Bigo Live, a social live streaming platform, that provides an interactive online stage for users to host and watch live streaming sessions, share their life moments, showcase their talents, and interact with people worldwide; Likee, a short-form video social platform, which enables users to discover, create, and share short videos, with video creation tools and personalized feeds; imo, an instant messenger platform, that provides audio and video communication services; Hago, a social networking platform that offers casual games integrating social features, such as audio and video multi-user chatrooms and 3D virtual interactive party games; and Shopline, a smart commerce platform, that provides solutions and services to enable merchants in creating and growing their brands online and reach customers through various sales channels, including e-commerce platforms, social commerce, and physical retail stores. It operates in the People's Republic of China, the United States, the Great Britain, Japan, South Korea, Australia, the Middle East, Southeast Asia, and internationally. The company was formerly known as YY Inc. and changed its name to JOYY Inc. in December 2019. JOYY Inc. was founded in 2005 and is headquartered in Singapore.