Yiren Digital (NYSE:YRD) versus MGT Capital Investments (OTCMKTS:MGTI) Critical Analysis

Yiren Digital (NYSE:YRD) and MGT Capital Investments (OTCMKTS:MGTI) are both small-cap computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their risk, profitability, earnings, institutional ownership, analyst recommendations, valuation and dividends.

Valuation & Earnings

This table compares Yiren Digital and MGT Capital Investments’ gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Yiren Digital	$689.53 million	0.57	$292.99 million	$3.33	1.36
MGT Capital Investments	$400,000.00	1.43	-$6.13 million	N/A	N/A

Yiren Digital has higher revenue and earnings than MGT Capital Investments.

Institutional & Insider Ownership

2.0% of Yiren Digital shares are held by institutional investors. 42.2% of Yiren Digital shares are held by company insiders. Comparatively, 3.8% of MGT Capital Investments shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Risk & Volatility

Yiren Digital has a beta of 0.67, indicating that its share price is 33% less volatile than the S&P 500. Comparatively, MGT Capital Investments has a beta of 3.07, indicating that its share price is 207% more volatile than the S&P 500.

Profitability

This table compares Yiren Digital and MGT Capital Investments’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Yiren Digital	40.47%	27.42%	21.39%
MGT Capital Investments	-1,888.47%	-202.89%	-598.61%

Analyst Ratings

This is a breakdown of recent ratings and target prices for Yiren Digital and MGT Capital Investments, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Yiren Digital	0	0	0	0	N/A
MGT Capital Investments	0	0	0	0	N/A

Summary

Yiren Digital beats MGT Capital Investments on 7 of the 9 factors compared between the two stocks.

About Yiren Digital

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.

About MGT Capital Investments

MGT Capital Investments, Inc. engages in cryptocurrency mining business in the United States. It also leases space to other bitcoin miners; and provides hosting services for owners of mining equipment. The company was incorporated in 1977 and is headquartered in Raleigh, North Carolina.