JOYY (JOYY) versus The Competition Financial Review

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

Institutional & Insider Ownership

36.8% of JOYY shares are owned by institutional investors. Comparatively, 40.5% of shares of all “Interactive Media & Services” companies are owned by institutional investors. 43.0% of JOYY shares are owned by company insiders. Comparatively, 23.6% of shares of all “Interactive Media & Services” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares JOYY and its competitors gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
JOYY	$2.27 billion	$2.10 billion	17.79
JOYY Competitors	$11.83 billion	$3.41 billion	24.76

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
JOYY	9.64%	3.28%	2.85%
JOYY Competitors	-350.03%	-11.83%	4.10%

Dividends

JOYY pays an annual dividend of $6.18 per share and has a dividend yield of 8.3%. JOYY pays out 147.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Interactive Media & Services” companies pay a dividend yield of 16.7% and pay out 4.9% of their earnings in the form of a dividend. JOYY lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Volatility and Risk

JOYY has a beta of 0.47, indicating that its share price is 53% less volatile than the S&P 500. Comparatively, JOYY’s competitors have a beta of 1.58, indicating that their average share price is 58% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings for JOYY and its competitors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
JOYY	0	2	5	0	2.71
JOYY Competitors	1396	5915	11328	427	2.57

JOYY currently has a consensus target price of $83.40, indicating a potential upside of 11.90%. As a group, “Interactive Media & Services” companies have a potential upside of 28.65%. Given JOYY’s competitors higher probable upside, analysts clearly believe JOYY has less favorable growth aspects than its competitors.

Summary

JOYY competitors beat JOYY on 10 of the 15 factors compared.

JOYY Company Profile

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.