Everi (EVRI) vs. Yirendai (YRD) Head-To-Head Analysis

Everi (NYSE: EVRI) and Yirendai (NYSE:YRD) are both small-cap business services companies, but which is the superior investment? We will compare the two businesses based on the strength of their risk, institutional ownership, analyst recommendations, earnings, profitability, dividends and valuation.

Dividends

Yirendai pays an annual dividend of $0.52 per share and has a dividend yield of 2.2%. Everi does not pay a dividend. Yirendai pays out 15.1% of its earnings in the form of a dividend.

Volatility and Risk

Everi has a beta of 1.21, meaning that its share price is 21% more volatile than the S&P 500. Comparatively, Yirendai has a beta of 4.95, meaning that its share price is 395% more volatile than the S&P 500.

Earnings and Valuation

This table compares Everi and Yirendai’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Everi $974.95 million 0.56 -$51.90 million ($0.31) -25.52
Yirendai $852.00 million 1.70 $210.83 million $3.45 6.93

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

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Everi and Yirendai, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Everi 0 0 3 0 3.00
Yirendai 0 1 3 0 2.75

Everi currently has a consensus price target of $10.67, suggesting a potential upside of 34.85%. Yirendai has a consensus price target of $47.50, suggesting a potential upside of 102.13%. Given Yirendai’s higher probable upside, analysts clearly believe Yirendai is more favorable than Everi.

Profitability

This table compares Everi and Yirendai’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Everi -5.16% N/A -1.10%
Yirendai 21.93% 51.90% 22.44%

Insider and Institutional Ownership

87.3% of Everi shares are owned by institutional investors. Comparatively, 11.5% of Yirendai shares are owned by institutional investors. 6.0% of Everi shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Yirendai beats Everi on 10 of the 15 factors compared between the two stocks.

About Everi

Everi Holdings Inc. provides technology solutions for the casino gaming industry in the United States, Europe, Canada, the Caribbean, Central America, and Asia. The company operates in two segments, Games and Payments. It offers gaming products, such as classic mechanical reel games, video reel games, core HDX, Empire MPX and the Texan HDX, wide area progressive games, and slot tournament systems; and sells player terminals, licenses, back office systems, and other related equipment. The company also provides Casino Cash Plus 3-in-1 ATM, a cash-dispensing machine that enables ATM cash withdrawals, POS debit card cash access transactions, and credit card cash access transactions; check verification and warranty services; CashClub that provides gaming establishments with a single dashboard interface to streamline credit and debit card cash access transaction processing and check warranty transactions; fully integrated kiosks that provide multiple functions to the casino floor; and other integrated kiosk solutions. In addition, it offers Central Credit, a gaming patron credit bureau service; Everi Compliance, a suite of compliance software to assist with anti-money laundering regulations, as well as assist casinos in filing required tax forms; non-ATM terminals that perform authorizations for credit card cash access and POS debit card transactions; database services; and an online payment processing solution for gaming operators in states that offer intra-state, and Internet-based gaming and lottery activities. The company was formerly known as Global Cash Access Holdings, Inc. and changed its name to Everi Holdings Inc. in August 2015. Everi Holdings Inc. was founded in 1998 and is headquartered in Las Vegas, Nevada.

About Yirendai

Yirendai Ltd. operates as an online consumer finance marketplace that connects borrowers and investors primarily in the People's Republic of China. It offers standard loan products; and fasttrack loan products through mobile applications. The company also provides investing tools. The company was founded in 2012 and is based in Beijing, the People's Republic of China. Yirendai Ltd. is a subsidiary of Creditease Holdings (Cayman) Limited.

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