Financial Analysis: BOX (NYSE:BOX) vs. Yalla Group (NYSE:YALA)

Yalla Group (NYSE:YALA) and BOX (NYSE:BOX) are both computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, risk, profitability and dividends.

Analyst Recommendations

This is a summary of current recommendations and price targets for Yalla Group and BOX, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Yalla Group	0	1	0	0	2.00
BOX	1	3	6	0	2.50

BOX has a consensus target price of $38.25, suggesting a potential upside of 30.28%. Given BOX’s stronger consensus rating and higher possible upside, analysts clearly believe BOX is more favorable than Yalla Group.

Volatility & Risk

Yalla Group has a beta of 0.23, suggesting that its stock price is 77% less volatile than the S&P 500. Comparatively, BOX has a beta of 0.79, suggesting that its stock price is 21% less volatile than the S&P 500.

Insider and Institutional Ownership

4.7% of Yalla Group shares are held by institutional investors. Comparatively, 86.7% of BOX shares are held by institutional investors. 52.2% of Yalla Group shares are held by insiders. Comparatively, 3.9% of BOX shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Yalla Group and BOX”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Yalla Group	$339.68 million	3.26	$135.68 million	$0.81	8.66
BOX	$1.09 billion	3.90	$244.62 million	$1.24	23.68

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Yalla Group	42.29%	20.06%	17.73%
BOX	20.30%	-21.77%	4.59%

Summary

BOX beats Yalla Group on 10 of the 14 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 BOX

Box, Inc. engages in the provision of an enterprise content platform that enables organizations to securely manage enterprise content while allowing easy, secure access and sharing of this content from anywhere, on any device. Its products include cloud content management, IT and admin controls, Box Governance, Box Zones, Box Relay, Box Shuttle, and Box KeySafe. The company was founded by Aaron Levie, Dylan Smith, Jeff Queisser, and Sam Ghods in March 2005 and is headquartered in Redwood City, CA.