Katapult (NASDAQ:KPLT) versus Yirendai (NYSE:YRD) Critical Survey

Katapult (NASDAQ:KPLT) and Yirendai (NYSE:YRD) are both small-cap finance companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, profitability, dividends, analyst recommendations, earnings, institutional ownership and risk.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Katapult	3.60%	-26.41%	10.86%
Yirendai	-14.35%	-7.58%	-5.21%

Volatility and Risk

Katapult has a beta of 1.55, indicating that its share price is 55% more volatile than the S&P 500. Comparatively, Yirendai has a beta of 1.14, indicating that its share price is 14% more volatile than the S&P 500.

Insider and Institutional Ownership

26.8% of Katapult shares are owned by institutional investors. Comparatively, 2.0% of Yirendai shares are owned by institutional investors. 8.0% of Katapult shares are owned by insiders. Comparatively, 42.2% of Yirendai shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Katapult and Yirendai, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Katapult	1	0	0	0	1.00
Yirendai	1	0	0	0	1.00

Valuation & Earnings

This table compares Katapult and Yirendai”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Katapult	$291.76 million	0.16	$1.37 million	$1.37	6.75
Yirendai	$5.07 billion	0.02	$7.80 million	($1.18)	-0.84

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

Summary

Katapult beats Yirendai on 7 of the 11 factors compared between the two stocks.

About Katapult

Katapult Holdings, Inc., an e-commerce focused financial technology company, provides e-commerce point-of-sale lease-purchase options for nonprime consumers in the United States. The company's technology platform provides nonprime consumers with a lease purchase option to enable them to obtain durable goods from its network of e-commerce retailers. It also offers Katapult Pay, a one-time use virtual card technology that makes lease purchasing and transactions. The company was formerly known as Cognical Holdings, Inc. and changed its name to Katapult Holdings, Inc. in February 2020. The company is headquartered in Plano, Texas.

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.