Financial Analysis: Scienjoy (NASDAQ:SJ) and Yalla Group (NYSE:YALA)
by Sarita Garza · The Markets DailyScienjoy (NASDAQ:SJ – Get Free Report) and Yalla Group (NYSE:YALA – Get Free Report) are both small-cap communication services companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, analyst recommendations, risk, profitability, institutional ownership and earnings.
Profitability
This table compares Scienjoy and Yalla Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Scienjoy | -46.33% | -63.91% | -54.20% |
| Yalla Group | 40.78% | 16.82% | 15.14% |
Analyst Ratings
This is a summary of recent recommendations and price targets for Scienjoy and Yalla Group, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Scienjoy | 1 | 0 | 0 | 0 | 1.00 |
| Yalla Group | 0 | 1 | 0 | 0 | 2.00 |
Insider & Institutional Ownership
0.3% of Scienjoy shares are held by institutional investors. Comparatively, 4.7% of Yalla Group shares are held by institutional investors. 33.5% of Scienjoy shares are held by insiders. Comparatively, 52.2% of Yalla Group shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Risk and Volatility
Scienjoy has a beta of 0.89, meaning that its share price is 11% less volatile than the S&P 500. Comparatively, Yalla Group has a beta of 0.4, meaning that its share price is 60% less volatile than the S&P 500.
Earnings and Valuation
This table compares Scienjoy and Yalla Group”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Scienjoy | $177.55 million | 0.20 | -$83.95 million | ($1.95) | -0.47 |
| Yalla Group | $341.94 million | 2.48 | $149.84 million | $0.77 | 7.21 |
Yalla Group has higher revenue and earnings than Scienjoy. Scienjoy is trading at a lower price-to-earnings ratio than Yalla Group, indicating that it is currently the more affordable of the two stocks.
Summary
Yalla Group beats Scienjoy on 11 of the 12 factors compared between the two stocks.
About Scienjoy
Scienjoy Holding Corporation provides mobile live streaming platforms in the People's Republic of China. The company focuses on interactive show live streaming from broadcasters to users. Its platforms enable users to view and interact with broadcasters through online chat, virtual items, and playing games. The company operates live streaming platforms under the Showself Live Streaming, Lehai Live Streaming, Haixiu Live Streaming, BeeLive Live Streaming, and Hongle Live Streaming names. It also offers technical development and advisory services. The company was founded in 2011 and is based in Hangzhou City, the People's Republic of China.
About Yalla Group
Yalla Group Limited operates a social networking and gaming platform primarily in the Middle East and North Africa region. It provides mobile applications, including Yalla, a voice-centric group chat platform; and Yalla Ludo, a casual gaming application. The company’s platform offers group chatting and games services; and sells virtual items, as well as provides upgrade services. The company was formerly known as FYXTech Corporation. Yalla Group Limited was founded in 2016 and is headquartered in Dubai, the United Arab Emirates.