Yalla Group (NYSE:YALA – Get Free Report) and Phoenix New Media (NYSE:FENG – Get Free Report) are both small-cap communication services companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, profitability, dividends, analyst recommendations, valuation, institutional ownership and risk.
Institutional & Insider Ownership
4.7% of Yalla Group shares are owned by institutional investors. Comparatively, 6.3% of Phoenix New Media shares are owned by institutional investors. 52.2% of Yalla Group shares are owned by company insiders. Comparatively, 10.9% of Phoenix New Media shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Analyst Ratings
This is a summary of recent ratings and price targets for Yalla Group and Phoenix New Media, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Yalla Group | 0 | 1 | 0 | 0 | 2.00 |
| Phoenix New Media | 1 | 0 | 0 | 0 | 1.00 |
Profitability
This table compares Yalla Group and Phoenix New Media’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Yalla Group | 40.78% | 16.82% | 15.14% |
| Phoenix New Media | 3.62% | 2.78% | 1.87% |
Earnings and Valuation
This table compares Yalla Group and Phoenix New Media”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Yalla Group | $341.94 million | 2.51 | $149.84 million | $0.77 | 7.28 |
| Phoenix New Media | $109.47 million | 0.15 | $50,000.00 | $0.36 | 3.88 |
Yalla Group has higher revenue and earnings than Phoenix New Media. Phoenix New Media is trading at a lower price-to-earnings ratio than Yalla Group, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Yalla Group has a beta of 0.4, meaning that its share price is 60% less volatile than the S&P 500. Comparatively, Phoenix New Media has a beta of -0.18, meaning that its share price is 118% less volatile than the S&P 500.
Summary
Yalla Group beats Phoenix New Media on 11 of the 12 factors compared between the two stocks.
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.
About Phoenix New Media
Phoenix New Media Limited provides content on an integrated Internet platform in the People's Republic of China. The company operates through two segments, Net Advertising Services and Paid Services. It offers content and services through PC channel, mobile channel, and telecom operators, as well as transmits content to TV viewers, primarily through Phoenix TV. The company, through its website, ifeng.com, provides various interest-based content verticals, such as news, finance, video, automobiles, technology, entertainment, military, real estate, fashion, and sport; and offers interactive services, including comments posting and user surveys. Its mobile channel consists of ifeng News, a news application that provides newsfeeds and other contents in the form of text, image, live streaming, and video; ifeng Video, a video application, which offers video news, live broadcasting, Phoenix TV programs content, etc.; i.ifeng.com mobile Internet website; and digital reading applications. In addition, Phoenix New Media Limited offers mobile newspaper, mobile video, and mobile game services, as well as wireless value-added services. The company was incorporated in 1998 and is headquartered in Beijing, the People's Republic of China. Phoenix New Media Limited is a subsidiary of Phoenix Satellite Television (B.V.I.) Holding Limited.
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