Financial Analysis: JOYY (NASDAQ:YY) and MoneyHero (NASDAQ:MNY)

MoneyHero (NASDAQ:MNY) and JOYY (NASDAQ:YY) are both communication services companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, earnings, risk, dividends and valuation.

Volatility and Risk

MoneyHero has a beta of 1.28, suggesting that its share price is 28% more volatile than the S&P 500. Comparatively, JOYY has a beta of 0.21, suggesting that its share price is 79% less volatile than the S&P 500.

Valuation & Earnings

This table compares MoneyHero and JOYY”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MoneyHero	$73.43 million	0.33	-$5.18 million	($0.33)	-1.70
JOYY	$2.24 billion	2.00	$301.82 million	($3.10)	-26.89

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

Analyst Recommendations

This is a breakdown of recent ratings and target prices for MoneyHero and JOYY, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MoneyHero	2	0	0	0	1.00
JOYY	0	0	2	0	3.00

JOYY has a consensus target price of $66.00, indicating a potential downside of 20.82%. Given JOYY’s stronger consensus rating and higher probable upside, analysts clearly believe JOYY is more favorable than MoneyHero.

Institutional and Insider Ownership

30.9% of MoneyHero shares are held by institutional investors. Comparatively, 36.8% of JOYY shares are held by institutional investors. 19.2% of MoneyHero shares are held by company insiders. Comparatively, 43.0% of JOYY shares are held 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.

Profitability

This table compares MoneyHero and JOYY’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MoneyHero	-14.85%	-21.04%	-10.59%
JOYY	9.02%	4.64%	2.96%

Summary

JOYY beats MoneyHero on 12 of the 14 factors compared between the two stocks.

About MoneyHero

MoneyHero Limited operates as a personal finance company. It engages in operation of online financial comparison platforms and related services. The company offers its products under Money Hero, SingSaver, Money101, MoneyMax, CompareHero, Seedly, and Creatory brands. MoneyHero Limited operates in Singapore, Hong Kong, Taiwan, the Philippines, Malaysia, and Thailand. The company was founded in 2014 and is headquartered in Singapore.

About JOYY

JOYY Inc., together with its subsidiaries, operates social media platforms that offer users engaging and experience across various video-based social platforms. It operates through two segments, BIGO and All Other. The company operates Bigo Live, a social live streaming platform, that provides an interactive online stage for users to host and watch live streaming sessions, share their life moments, showcase their talents, and interact with people worldwide; Likee, a short-form video social platform, which enables users to discover, create, and share short videos, with video creation tools and personalized feeds; imo, an instant messenger platform, that provides audio and video communication services; Hago, a social networking platform that offers casual games integrating social features, such as audio and video multi-user chatrooms and 3D virtual interactive party games; and Shopline, a smart commerce platform, that provides solutions and services to enable merchants in creating and growing their brands online and reach customers through various sales channels, including e-commerce platforms, social commerce, and physical retail stores. It operates in the People's Republic of China, the United States, the Great Britain, Japan, South Korea, Australia, the Middle East, Southeast Asia, and internationally. The company was formerly known as YY Inc. and changed its name to JOYY Inc. in December 2019. JOYY Inc. was founded in 2005 and is headquartered in Singapore.