Rakuten (OTCMKTS:RKUNY – Get Free Report) and Yatra Online (NASDAQ:YTRA – Get Free Report) are both computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, valuation, dividends, analyst recommendations and risk.
Profitability
This table compares Rakuten and Yatra Online’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Rakuten | -4.83% | -9.99% | -0.44% |
| Yatra Online | -0.17% | -0.22% | -0.13% |
Institutional and Insider Ownership
51.0% of Yatra Online shares are owned by institutional investors. 4.4% of Yatra Online shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Rakuten | 0 | 1 | 0 | 2 | 3.33 |
| Yatra Online | 1 | 1 | 1 | 0 | 2.00 |
Yatra Online has a consensus price target of $3.00, suggesting a potential upside of 221.54%. Given Yatra Online’s higher possible upside, analysts plainly believe Yatra Online is more favorable than Rakuten.
Earnings & Valuation
This table compares Rakuten and Yatra Online”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Rakuten | $16.70 billion | 0.65 | -$1.19 billion | ($0.37) | -13.41 |
| Yatra Online | $93.14 million | 0.62 | -$1.25 million | ($0.02) | -46.65 |
Yatra Online has lower revenue, but higher earnings than Rakuten. Yatra Online is trading at a lower price-to-earnings ratio than Rakuten, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Rakuten has a beta of 1.15, meaning that its stock price is 15% more volatile than the S&P 500. Comparatively, Yatra Online has a beta of 0.74, meaning that its stock price is 26% less volatile than the S&P 500.
Summary
Yatra Online beats Rakuten on 9 of the 15 factors compared between the two stocks.
About Rakuten
Rakuten Group, Inc. provides services in e-commerce, fintech, digital content, and communications to various users in Japan and internationally. The company operates through three segments: Internet Services, FinTech, and Mobile. The Internet Services segment provides range of e-commerce sites, such as Rakuten Ichiba, an Internet shopping mall, online cash-back sites, travel booking sites, portal sites, and digital content sites. It also offers messaging services and sells advertising; and manages professional sport teams. The FinTech segment offers financial services over the internet related to banking and securities, credit cards, life insurance, general insurance, electronic payment business, crypto asset (virtual currency) spot transaction, etc. The Mobile segment provides communication services and technology, electricity supply, and digital content site services. The company was formerly known as Rakuten, Inc. and changed its name to Rakuten Group, Inc. in April 2021. Rakuten Group, Inc. was incorporated in 1997 and is headquartered in Setagaya, Japan.
About Yatra Online
Yatra Online, Inc. operates as an online travel company in India and internationally. It operates in Air Ticketing, and Hotels and Packages, and Other Services segments. The company provides travel-related services, including domestic and international air ticketing, hotel bookings, homestays, holiday packages, bus ticketing, rail ticketing, cab bookings, and ancillary services for leisure and business travelers. It also offers various services, including exploring and searching comprises web and mobile platforms that enable customers to explore and search flights, hotels, holiday packages, buses, trains, and activities through its website, www.yatra.com. In addition, the company provides its services through mobile applications that comprise Yatra, a mobile interface; Yatra Web Check-In, an application for flight check-in process for travelers; and Yatra Corporate, a self-booking application for business customers. Further, it offers tours, sightseeing, shows, and event services; rail and cab services, and other ancillary travel services; and sells travel vouchers and coupons. The company was incorporated in 2005 and is based in Gurugram, India.
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