Contrasting Booking (NASDAQ:BKNG) and Yunji (NASDAQ:YJ)

Booking (NASDAQ:BKNG) and Yunji (NASDAQ:YJ) are both retail/wholesale companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, valuation, dividends, risk, profitability, analyst recommendations and institutional ownership.

Analyst Ratings

This is a summary of recent recommendations and price targets for Booking and Yunji, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Booking	0	8	28	1	2.81
Yunji	1	0	0	0	1.00

Booking currently has a consensus price target of $234.47, indicating a potential upside of 22.11%. Given Booking’s stronger consensus rating and higher possible upside, equities analysts clearly believe Booking is more favorable than Yunji.

Profitability

This table compares Booking and Yunji’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Booking	20.08%	-128.99%	25.69%
Yunji	N/A	N/A	N/A

Volatility & Risk

Booking has a beta of 1.2, indicating that its stock price is 20% more volatile than the S&P 500. Comparatively, Yunji has a beta of 0.04, indicating that its stock price is 96% less volatile than the S&P 500.

Institutional and Insider Ownership

92.4% of Booking shares are held by institutional investors. 0.2% of Booking shares are held by insiders. Comparatively, 45.3% of Yunji shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Booking and Yunji”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Booking	$26.92 billion	5.65	$5.40 billion	$6.65	28.87
Yunji	$45.33 million	0.19	-$19.06 million	($3.37)	-0.52

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

Summary

Booking beats Yunji on 13 of the 15 factors compared between the two stocks.

About Booking

Booking Holdings Inc, formerly The Priceline Group Inc., is a provider of travel and restaurant online reservation and related services. The Company, through its online travel companies (OTCs), connects consumers wishing to make travel reservations with providers of travel services across the world. It offers consumers an array of accommodation reservations (including hotels, bed and breakfasts, hostels, apartments, vacation rentals and other properties) through its Booking.com, priceline.com and agoda.com brands. Its other brands include KAYAK, Rentalcars.com and OpenTable, Inc. (OpenTable). As of December 31, 2016, Booking.com offered accommodation reservation services for over 1,115,000 properties in over 220 countries and territories on its various Websites and in over 40 languages, which included over 568,000 vacation rental properties (updated property counts were available on the Booking.com Website).

About Yunji

Yunji Inc., together with its subsidiaries, operates a social e-commerce platform in the People's Republic of China. It offers a range of product categories that cater various daily needs of users and their households, including beauty and personal care, household goods, cloths, food and fresh produce, computer and electronics, apparel, bags and cases, baby and maternity products, and home appliances. The company was founded in 2015 and is headquartered in Hangzhou, the People's Republic of China.