Financial Survey: Teads (NASDAQ:TEAD) versus JOYY (NASDAQ:JOYY)

JOYY (NASDAQ:JOYY) and Teads (NASDAQ:TEAD) are both communication services companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, institutional ownership, valuation, profitability, analyst recommendations, earnings and dividends.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
JOYY	0	1	6	0	2.86
Teads	1	2	1	0	2.00

JOYY currently has a consensus target price of $83.40, indicating a potential upside of 3.41%. Teads has a consensus target price of $1.00, indicating a potential upside of 76.96%. Given Teads’ higher probable upside, analysts plainly believe Teads is more favorable than JOYY.

Volatility & Risk

JOYY has a beta of 0.38, suggesting that its share price is 62% less volatile than the S&P 500. Comparatively, Teads has a beta of 1.61, suggesting that its share price is 61% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
JOYY	9.64%	3.28%	2.85%
Teads	-43.32%	-49.37%	-6.14%

Valuation and Earnings

This table compares JOYY and Teads”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
JOYY	$2.12 billion	1.86	$2.10 billion	$4.19	19.25
Teads	$1.30 billion	0.04	-$517.07 million	($5.53)	-0.10

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

Insider & Institutional Ownership

36.8% of JOYY shares are held by institutional investors. Comparatively, 60.4% of Teads shares are held by institutional investors. 43.0% of JOYY shares are held by company insiders. Comparatively, 12.0% of Teads shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

JOYY beats Teads on 11 of the 14 factors compared between the two stocks.

About JOYY

JOYY Inc., through its subsidiaries, operates social media platforms that offer users engaging and experience across various video and audio-based social platforms. The company operates Bigo Live, a live streaming platform that allows users to live stream specific moments, such as live talk with other users, make video calls, and watch trend videos; Likee, a short-form video social platform that focuses on enabling users to create short-form video; Hago, a casual game-oriented social platform; and imo, a chat and instant messaging application with functions, including video calls, text messages, and photo and video sharing. It operates in the People’s Republic of China, the United States, the Great Britain, Japan, South Korea, Australia, the Middle East, and Southeast Asia and others. 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.

About Teads

Outbrain Inc., together with its subsidiaries, operates an online content recommendation platform worldwide. It offers Outbrain Engage, a product suite for media partners that provides personalized feeds and data-driven recommendations, as well as a solution to maximize user engagement. The company’s Outbrain Engage solution also includes a web-based dashboard to manage and control various aspects of the platform, including content, formats, sources, frequency, and categories of ads delivered on their properties, as well as monetizes the content through customized data-driven advertising. It also provides Outbrain Amplify, a product suite for advertisers that provides an open web platform that helps users to connect with audiences on premium digital properties. The company’s Outbrain Amplify solution also provides advertisers with access to ad inventory that support various formats, including text and image, video, interactive carousel, app install, and other forms of direct response; and ads optimized for engagement. Outbrain Inc. was incorporated in 2006 and is headquartered in New York, New York.