Contrasting zSpace (NASDAQ:ZSPC) & Yalla Group (NYSE:YALA)

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

Analyst Recommendations

This is a summary of recent recommendations for Yalla Group and zSpace, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Yalla Group	0	1	0	0	2.00
zSpace	1	1	2	0	2.25

zSpace has a consensus price target of $6.00, indicating a potential upside of 1,338.85%. Given zSpace’s stronger consensus rating and higher possible upside, analysts plainly believe zSpace is more favorable than Yalla Group.

Insider and Institutional Ownership

4.7% of Yalla Group shares are owned by institutional investors. 52.2% of Yalla Group shares are owned by insiders. Comparatively, 55.7% of zSpace shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Yalla Group and zSpace’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%
zSpace	-68.88%	N/A	-177.47%

Earnings & Valuation

This table compares Yalla Group and zSpace”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Yalla Group	$348.90 million	3.20	$135.68 million	$0.81	8.71
zSpace	$31.55 million	0.38	-$20.82 million	($0.79)	-0.53

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

Summary

Yalla Group beats zSpace on 9 of the 13 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 zSpace

zSpace Technologies, Inc. is a provider of commercial augmented reality and virtual reality technology principally in the education market. The Company offers differentiated hardware along with learning software modules for K-12 science, technology, engineering, game design and mathematics applications, as well as workforce-oriented career and technical education applications. zSpace Technologies Inc. is based in SAN JOSE, Calif.