Connecture (CNXR) and Yirendai (NYSE:YRD) Head to Head Comparison

Yirendai (NYSE: YRD) and Connecture (OTCMKTS:CNXR) are both computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their dividends, analyst recommendations, risk, profitability, institutional ownership, valuation and earnings.

Insider & Institutional Ownership

6.6% of Yirendai shares are held by institutional investors. Comparatively, 38.8% of Connecture shares are held by institutional investors. 58.1% of Connecture shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Earnings & Valuation

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

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Yirendai $466.37 million 5.35 $160.79 million $3.26 12.81
Connecture $81.89 million 0.08 -$26.53 million ($0.92) -0.32

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

Analyst Recommendations

This is a breakdown of current recommendations for Yirendai and Connecture, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Yirendai 1 0 3 0 2.50
Connecture 0 0 0 0 N/A

Yirendai presently has a consensus price target of $39.33, suggesting a potential downside of 5.79%. Given Yirendai’s higher probable upside, research analysts clearly believe Yirendai is more favorable than Connecture.

Volatility & Risk

Yirendai has a beta of 8.34, meaning that its share price is 734% more volatile than the S&P 500. Comparatively, Connecture has a beta of 1.8, meaning that its share price is 80% more volatile than the S&P 500.

Dividends

Yirendai pays an annual dividend of $1.48 per share and has a dividend yield of 3.5%. Connecture does not pay a dividend. Yirendai pays out 45.4% of its earnings in the form of a dividend.

Profitability

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

Net Margins Return on Equity Return on Assets
Yirendai 32.37% 80.79% 36.20%
Connecture -19.38% N/A -17.71%

Summary

Yirendai beats Connecture on 11 of the 14 factors compared between the two stocks.

About Yirendai

Yirendai Ltd. is engaged in online consumer finance marketplace business in China. The Company conducts its business in China, through Yi Ren Heng Ye Technology Development (Beijing) Co., Ltd. (Heng Ye) and its consolidated variable interest entity, Heng Cheng Technology Development (Beijing) Co., Ltd. (Heng Cheng). Heng Cheng operates its Website, www.yirendai.com, and has an Internet content provider (ICP) license as an Internet information provider. Its online marketplace facilitates standard loan products, express loan products and vertical loan products to borrowers. Uses for these loan products include home remodels, durable good purchases, travel and continuing education. Its online marketplace provides investors with various investing tools, such as automated investing tool and self-directed investing tool. It maintains a secondary loan market on its marketplace where investors can transfer the loans they hold prior to maturity at the fair value of the remaining loans.

About Connecture

Connecture, Inc. provides a Web-based consumer shopping, enrollment and retention platform for health insurance distribution. The Company caters its services to health insurance marketplace operators, such as health plans, brokers and exchange operators. It operates through four segments: Enterprise/Commercial, Enterprise/State, Medicare and Private Exchange. The Enterprise/Commercial segment offers insurance distribution solutions to health plans. The Enterprise/State segment offers the sales automation solutions to state Governments, which allow its customers to offer customized individual and small group exchanges. The Medicare segment offers Web-based Medicare plan comparison, prescription drug comparison and enrollment tools for health plans, pharmacy benefit managers, pharmacies, field marketing organizations and call centers. The Private Exchange segment offers defined-contribution benefit exchange solutions to benefit consultants, brokers, exchange operators and aggregators.

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