System1 (NYSE:SST – Get Free Report) and Yalla Group (NYSE:YALA – Get Free Report) are both small-cap business services companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, profitability, risk, earnings, analyst recommendations, institutional ownership and valuation.
Valuation & Earnings
This table compares System1 and Yalla Group’s revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
System1 | $363.44 million | 0.26 | -$227.22 million | ($2.27) | -0.46 |
Yalla Group | $324.09 million | 1.85 | $117.34 million | $0.70 | 5.41 |
Yalla Group has lower revenue, but higher earnings than System1. System1 is trading at a lower price-to-earnings ratio than Yalla Group, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
System1 | 0 | 1 | 0 | 0 | 2.00 |
Yalla Group | 0 | 0 | 0 | 0 | N/A |
System1 presently has a consensus target price of $2.00, indicating a potential upside of 90.48%. Given System1’s higher possible upside, analysts plainly believe System1 is more favorable than Yalla Group.
Risk & Volatility
System1 has a beta of 1.35, meaning that its share price is 35% more volatile than the S&P 500. Comparatively, Yalla Group has a beta of 1.17, meaning that its share price is 17% more volatile than the S&P 500.
Insider & Institutional Ownership
87.5% of System1 shares are owned by institutional investors. Comparatively, 4.7% of Yalla Group shares are owned by institutional investors. 28.3% of System1 shares are owned by company insiders. Comparatively, 52.2% of Yalla Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Profitability
This table compares System1 and Yalla Group’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
System1 | -53.92% | -53.12% | -14.48% |
Yalla Group | 39.64% | 23.49% | 20.73% |
Summary
Yalla Group beats System1 on 8 of the 12 factors compared between the two stocks.
About System1
System1, Inc. provides omnichannel customer acquisition platform services through its proprietary responsive acquisition marketing platform in the United States, the United Kingdom, Canada, the Netherlands, and internationally. It operates through two segments: Owned and Operated Advertising, and Partner Network. The company engages in the provision of acquiring traffic to its owned and operated websites, as well as revenue-sharing arrangements and related services. It also operates MapQuest, a web-based navigation service that delivers turn-by-turn direction services to users; Info.com, a metasearch engine that consumers can use to search for relevant information; HowStuffWorks, a commercial website focused on helping people solve problems in their daily lives by using various types of digital media to easily breakdown and explain complex concepts, topics, terminology and mechanisms; Startpage, a private search engine that allows users to browse and search the Internet in complete privacy; and CouponFollow for coupon destinations for online shoppers, as well as ActiveBeat and Infospace. In addition, the company provides antivirus software solutions, which offers customers a single packaged solution that provides protection and reporting to the end users. The company is based in Los Angeles, California.
About Yalla Group
Yalla Group Limited operates a social networking and gaming platform primarily in the Middle East and North Africa region. It provides mobile applications, including Yalla, a voice-centric group chat platform; and Yalla Ludo, a casual gaming application. The company's platform offers group chatting and games services; and sells virtual items, as well as provides upgrade services. The company was formerly known as FYXTech Corporation. Yalla Group Limited was founded in 2016 and is headquartered in Dubai, the United Arab Emirates.
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