Analyzing Xunlei (NASDAQ:XNET) and Lyft (NASDAQ:LYFT)

Xunlei (NASDAQ:XNET) and Lyft (NASDAQ:LYFT) are both computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, valuation, profitability, institutional ownership, analyst recommendations, dividends and risk.

Volatility and Risk

Xunlei has a beta of 0.99, meaning that its stock price is 1% less volatile than the S&P 500. Comparatively, Lyft has a beta of 1.94, meaning that its stock price is 94% more volatile than the S&P 500.

Insider & Institutional Ownership

5.1% of Xunlei shares are owned by institutional investors. Comparatively, 83.1% of Lyft shares are owned by institutional investors. 21.7% of Xunlei shares are owned by insiders. Comparatively, 3.1% of Lyft 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.

Profitability

This table compares Xunlei and Lyft’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Xunlei	315.06%	2.75%	2.21%
Lyft	2.40%	18.29%	2.38%

Analyst Recommendations

This is a summary of current ratings for Xunlei and Lyft, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Xunlei	0	0	1	0	3.00
Lyft	2	23	11	0	2.25

Lyft has a consensus target price of $22.80, indicating a potential upside of 19.04%. Given Lyft’s higher possible upside, analysts plainly believe Lyft is more favorable than Xunlei.

Earnings & Valuation

This table compares Xunlei and Lyft”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Xunlei	$324.40 million	1.48	$1.22 million	$19.91	0.38
Lyft	$5.79 billion	1.32	$22.78 million	$0.38	50.39

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

Summary

Lyft beats Xunlei on 9 of the 14 factors compared between the two stocks.

About Xunlei

Xunlei Limited, together with its subsidiaries, operates an internet platform for digital media content in the People's Republic of China. Its platform is based on cloud technology that enables users to access, store, manage, and consume digital media content. The company offers Xunlei Accelerator, which enables users to accelerate digital transmission over the internet; mobile acceleration plug-in, which provides mobile device users with benefits of download speed acceleration and download success rate improvements; and subscription services that offer users premium services through Green Channel and Fast Bird products. It also provides Mobile Xunlei, a mobile application that allows users to search, download, consume, and store digital media content; Xunlei Media Player, which supports online and offline play of digital media content, as well as simultaneous play of digital media content while it is being transmitted by Xunlei Accelerator; online games through online game website and mobile app; advertising services; live streaming products, including video and audio livestreaming; and develops software and computer software, as well as other internet value-added services. In addition, the company offers cloud computing services through OneThing Cloud, and StellarCloud; and hardware for edging computing, such as OneThing Edge Cube, and OneThing Edge Atom. Further it offers ThunderChain, a blockchain infrastructure product that enables its users to develop and manage blockchain applications. The company was formerly known as Giganology Limited and changed its name to Xunlei Limited in January 2011. Xunlei Limited was founded in 2003 and is headquartered in Shenzhen, the People's Republic of China.

About Lyft

Lyft, Inc. operates a peer-to-peer marketplace for on-demand ridesharing in the United States and Canada. It operates multimodal transportation networks that offer access to various transportation options through the Lyft platform and mobile-based applications. The company's platform provides a ridesharing marketplace, which connects drivers with riders; Express Drive, a car rental program for drivers; and a network of shared bikes and scooters in various cities to address the needs of riders for short trips. It also offers centralized tools and enterprise transportation solutions, such as concierge transportation solutions for organizations; Lyft Pink subscription plans; Lyft Pass commuter programs; first-mile and last-mile services; and university safe rides programs. The company was formerly known as Zimride, Inc. and changed its name to Lyft, Inc. in April 2013. Lyft, Inc. was incorporated in 2007 and is headquartered in San Francisco, California.