Head to Head Comparison: Yirendai (NYSE:YRD) vs. Jernigan Capital (NASDAQ:JCAP)

Yirendai (NYSE:YRD) and Jernigan Capital (NASDAQ:JCAP) are both small-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their risk, analyst recommendations, dividends, valuation, profitability, earnings and institutional ownership.

Dividends

Yirendai pays an annual dividend of $0.20 per share and has a dividend yield of 17.3%. Jernigan Capital pays an annual dividend of $0.96 per share and has a dividend yield of 4.1%. Yirendai pays out -16.9% of its earnings in the form of a dividend. Jernigan Capital pays out 39.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Yirendai is clearly the better dividend stock, given its higher yield and lower payout ratio.

Risk & Volatility

Yirendai has a beta of 1.13, suggesting that its stock price is 13% more volatile than the S&P 500. Comparatively, Jernigan Capital has a beta of -0.16, suggesting that its stock price is 116% less volatile than the S&P 500.

Profitability

This table compares Yirendai and Jernigan Capital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Yirendai	-14.35%	-7.58%	-5.21%
Jernigan Capital	23.50%	35.87%	8.16%

Analyst Recommendations

This is a summary of recent ratings for Yirendai and Jernigan Capital, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Yirendai	1	0	0	0	1.00
Jernigan Capital	0	2	4	1	2.86

Jernigan Capital has a consensus price target of $27.50, indicating a potential upside of 16.13%. Given Jernigan Capital’s stronger consensus rating and higher possible upside, analysts plainly believe Jernigan Capital is more favorable than Yirendai.

Earnings & Valuation

This table compares Yirendai and Jernigan Capital”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Yirendai	$817.84 million	0.12	$7.80 million	($1.18)	-0.98
Jernigan Capital	$613.29 million	2.38	$187.96 million	$2.45	9.67

Jernigan Capital has lower revenue, but higher earnings than Yirendai. Yirendai is trading at a lower price-to-earnings ratio than Jernigan Capital, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

2.0% of Yirendai shares are owned by institutional investors. 42.2% of Yirendai shares are owned by company insiders. Comparatively, 8.3% of Jernigan Capital shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Jernigan Capital beats Yirendai on 11 of the 17 factors compared between the two stocks.

About Yirendai

Yiren Digital Ltd. provides financial services through an AI-powered platform in China. Its platform provides a suite of financial and lifestyle services. The company offers financial services, which provides a portfolio of loan products to borrowers; insurance brokerage services; and consumption and lifestyle services, including non-financial products and services to meet various consumer needs. It supports clients at various growth stages, addressing financing needs arising from consumption and production activities, and augmenting the well-being and security of individuals, families, and businesses. The company was formerly known as Yirendai Ltd. and changed its name to Yiren Digital Ltd. in September 2019. Yiren Digital Ltd. was founded in 2012 and is based in Beijing, the People's Republic of China. Yiren Digital Ltd. operates as a subsidiary of CreditEase Holdings (Cayman) Limited.

About Jernigan Capital

Jernigan Capital is a New York Stock Exchange-listed real estate investment trust (NYSE: JCAP) that provides debt and equity capital to private developers, owners and operators of self-storage facilities with a view to eventual outright ownership of facilities the Company finances. The Company's mission is to maximize shareholder value by accumulating a multi-billion dollar investment portfolio consisting of the newest, most attractive and best located self-storage facilities in the United States through a talented and experienced team demonstrating the highest levels of integrity, dedication, excellence and community.