Yelp (NYSE: YELP) and Regis (NYSE:RGS) are both computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, analyst recommendations, valuation, dividends, risk, profitability and institutional ownership.
Institutional & Insider Ownership
87.7% of Yelp shares are held by institutional investors. Comparatively, 94.2% of Regis shares are held by institutional investors. 9.0% of Yelp shares are held by company insiders. Comparatively, 24.0% of Regis shares are held 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.
Yelp has a beta of 1.04, suggesting that its share price is 4% more volatile than the S&P 500. Comparatively, Regis has a beta of 1.38, suggesting that its share price is 38% more volatile than the S&P 500.
This is a breakdown of recent ratings for Yelp and Regis, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Yelp presently has a consensus target price of $45.40, indicating a potential upside of 10.29%. Regis has a consensus target price of $18.00, indicating a potential upside of 2.92%. Given Yelp’s higher possible upside, research analysts clearly believe Yelp is more favorable than Regis.
Valuation & Earnings
This table compares Yelp and Regis’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Yelp||$846.81 million||4.07||$152.85 million||$0.07||588.00|
|Regis||$1.69 billion||0.48||-$16.14 million||$0.06||291.50|
Yelp has higher earnings, but lower revenue than Regis. Regis is trading at a lower price-to-earnings ratio than Yelp, indicating that it is currently the more affordable of the two stocks.
This table compares Yelp and Regis’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Yelp Company Profile
Yelp Inc. operates a platform that connects people with local businesses in the United States, Canada, and internationally. The company's platform covers various local business categories, including restaurants, shopping, beauty and fitness, arts, entertainment and events, home and local services, health, nightlife, travel and hotel, auto, and others. It provides free and paid advertising products to businesses, as well as enables businesses to deliver targeted search advertising to local audiences through its Website and mobile application; and business listing products. The company's Yelp platform enables consumers to order flowers, purchase event tickets, and book spa and salon appointments. In addition, it offers Yelp Deals that allow local business owners to create promotional discounted deals for their products and services; and Gift Certificates products for local business owners to sell full-price gift certificates directly to customers through their business listing pages. Further, the company provides other services comprising Yelp Reservations that provide restaurants, nightlife, and other venues with the ability to offer online reservations directly from their Yelp business listing pages; and Yelp Nowait, a subscription-based waitlist management solution that allows consumers to check wait times and join waitlists remotely, as well as businesses to manage seating and server rotation. Its other services also include WiFi Marketing product for businesses to create on-premises WiFi access for customers and advertise products on the WiFi log-in page, as well as collect contact and social media information from customers. The company offers its products directly through its sales force; indirectly through partners; and online through its Website. Yelp Inc. was founded in 2004 and is headquartered in San Francisco, California.
Regis Company Profile
Regis Corporation owns, operates, and franchises hairstyling and hair care salons. The company operates through four segments: North American Value, North American Franchise, North American Premium, and International. Its salons offer haircutting and styling, including shampooing and conditioning; custom styling, cutting, and hair coloring, as well as professional hair care products; and other services. The company operates its salons under the SmartStyle, Supercuts, MasterCuts, Regis Salons, Cost Cutters, Hair Masters, First Choice Haircutters, Magicuts, and Sassoon names in enclosed mall shopping centers, strip shopping centers, Walmart Supercenters, department stores, mass merchants, and high-street locations. As of January 08, 2018, it owned, franchised, or held ownership interests in 8,944 locations worldwide. The company, through its 54.6% interest in Empire Education Group, Inc., operates accredited cosmetology schools under the Empire Beauty School brand. It owns and operates 88 cosmetology schools in the United States. Regis Corporation was founded in 1954 and is headquartered in Edina, Minnesota.
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