Teads (NASDAQ:TEAD – Get Free Report) and JOYY (NASDAQ:YY – Get Free Report) are both communication services companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, profitability, dividends, analyst recommendations, earnings, institutional ownership and risk.
Profitability
This table compares Teads and JOYY’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Teads | -73.38% | -222.41% | -10.03% |
| JOYY | 9.02% | 4.64% | 2.96% |
Volatility and Risk
Teads has a beta of 1.62, indicating that its share price is 62% more volatile than the S&P 500. Comparatively, JOYY has a beta of 0.21, indicating that its share price is 79% less volatile than the S&P 500.
Insider and Institutional Ownership
60.4% of Teads shares are owned by institutional investors. Comparatively, 36.8% of JOYY shares are owned by institutional investors. 12.0% of Teads shares are owned by insiders. Comparatively, 43.0% of JOYY shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Analyst Ratings
This is a summary of recent ratings and recommmendations for Teads and JOYY, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Teads | 1 | 1 | 1 | 0 | 2.00 |
| JOYY | 0 | 0 | 2 | 0 | 3.00 |
Teads currently has a consensus target price of $0.40, suggesting a potential upside of 134.19%. JOYY has a consensus target price of $66.00, suggesting a potential downside of 18.12%. Given Teads’ higher probable upside, analysts plainly believe Teads is more favorable than JOYY.
Earnings & Valuation
This table compares Teads and JOYY”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Teads | $1.30 billion | 0.01 | -$517.07 million | ($8.63) | -0.02 |
| JOYY | $2.24 billion | 1.94 | $301.82 million | ($3.10) | -26.00 |
JOYY has higher revenue and earnings than Teads. JOYY is trading at a lower price-to-earnings ratio than Teads, indicating that it is currently the more affordable of the two stocks.
Summary
JOYY beats Teads on 10 of the 13 factors compared between the two stocks.
About Teads
Teads is a global advertising technology company that operates an omnichannel digital advertising platform. The company connects advertisers and agencies with publishers and audiences across digital media, helping brands plan, buy, deliver and measure advertising campaigns through a combination of technology, data and creative services. Its offerings include video, display, native, connected television and other digital advertising formats. Teads provides tools for campaign management, audience targeting, automated media buying, creative development and performance measurement.
About JOYY
JOYY Inc. is a technology company focused on live streaming, short-form video and online communication services. Its platforms include Bigo Live, which lets users broadcast and watch live video; Likee, a short-video creation and sharing app; and imo, a messaging and voice and video calling service. The company was founded in China as YY Inc. and adopted the JOYY name in 2019. It now serves users in markets around the world, with a focus on international audiences. Its former China-focused YY Live business was sold to Baidu in 2021.
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