Critical Survey: Yalla Group (NYSE:YALA) vs. OneConnect Financial Technology (NYSE:OCFT)

   2021-01-02 08:01

Yalla Group (NYSE:YALA) and OneConnect Financial Technology (NYSE:OCFT) are both mid-cap computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, dividends, analyst recommendations, risk, profitability, institutional ownership and earnings.



Analyst Ratings

This is a breakdown of current recommendations and price targets for Yalla Group and OneConnect Financial Technology, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Yalla Group 0 2 0 0 2.00
OneConnect Financial Technology 0 0 1 0 3.00

OneConnect Financial Technology has a consensus target price of $28.00, suggesting a potential upside of 42.06%. Given OneConnect Financial Technology’s stronger consensus rating and higher probable upside, analysts clearly believe OneConnect Financial Technology is more favorable than Yalla Group.

Profitability

This table compares Yalla Group and OneConnect Financial Technology’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Yalla Group N/A N/A N/A
OneConnect Financial Technology -19.82% -12.38% -6.11%

Insider and Institutional Ownership

9.1% of OneConnect Financial Technology shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Yalla Group and OneConnect Financial Technology’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Yalla Group N/A N/A N/A N/A N/A
OneConnect Financial Technology $330.51 million 21.81 -$240.28 million ($0.75) -26.28

Yalla Group has higher earnings, but lower revenue than OneConnect Financial Technology.

Summary

OneConnect Financial Technology beats Yalla Group on 5 of the 8 factors compared between the two stocks.

About Yalla Group

Yalla Group Limited operates a voice-centric social networking and entertainment platform under the Yalla name primarily in the Middle East and North Africa region. The company was formerly known as FYXTech Corporatio. Yalla Group Limited was incorporated in 2018 and is headquartered in Dubai, the United Arab Emirates.

About OneConnect Financial Technology

OneConnect Financial Technology Co., Ltd. provides cloud-platform-based Fintech solutions, and online information and operating support services for financial institutions in the People’s Republic of China. It offers digital retail banking, small and medium enterprises (SME) financing and services, retail and SME banking risk-management, auto insurance operations and services, asset management, asset-liability management, artificial intelligence customer service, core systems, and insurance sales management solutions. The company also operates Regtech, an end-to-end regulatory solution to help regulatory authorities automate and digitalize their operations; Gamma O, an open API platform-as-a-service for reusable financial technology components and integrations; and Blockchain network-as-a-service. In addition, it provides technology infrastructure, such as data management and cloud services. The company serves customers in the financial services industry, including banking, insurance, and asset management. OneConnect Financial Technology Co., Ltd. was founded in 2015 and is headquartered in Shenzhen, the People’s Republic of China. OneConnect Financial Technology Co., Ltd. has a strategic agreement with the Hainan Local Financial Supervision Administration to develop smart financial and smart supervision services in the island province of Hainan, as well as the financial sector in Hainan free trade port. OneConnect Financial Technology Co., Ltd. is a subsidiary of Sen Rong Limited.

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