Financial Analysis: Sportradar Group (NASDAQ:SRAD) & Yum China (NYSE:YUMC)

Yum China (NYSE:YUMC) and Sportradar Group (NASDAQ:SRAD) are both consumer discretionary companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, profitability, valuation, analyst recommendations, dividends, earnings and risk.

Volatility and Risk

Yum China has a beta of 0.06, suggesting that its stock price is 94% less volatile than the S&P 500. Comparatively, Sportradar Group has a beta of 1.66, suggesting that its stock price is 66% more volatile than the S&P 500.

Profitability

This table compares Yum China and Sportradar Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Yum China	7.90%	16.49%	9.27%
Sportradar Group	1.47%	2.57%	0.80%

Insider and Institutional Ownership

85.6% of Yum China shares are held by institutional investors. 0.4% of Yum China shares are held by insiders. Comparatively, 85.0% of Sportradar Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Yum China and Sportradar Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Yum China	$11.80 billion	1.44	$929.00 million	$2.88	17.26
Sportradar Group	$1.46 billion	2.91	$113.50 million	$0.08	177.12

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

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Yum China and Sportradar Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Yum China	0	1	3	0	2.75
Sportradar Group	0	9	9	1	2.58

Yum China presently has a consensus price target of $59.21, suggesting a potential upside of 19.12%. Sportradar Group has a consensus price target of $17.97, suggesting a potential upside of 26.81%. Given Sportradar Group’s higher probable upside, analysts plainly believe Sportradar Group is more favorable than Yum China.

Summary

Yum China beats Sportradar Group on 8 of the 15 factors compared between the two stocks.

About Yum China

Yum China Holdings, Inc. owns, operates, and franchises restaurants in the People's Republic of China. The company operates through KFC, Pizza Hut, and All Other segments. It operates restaurants under the KFC, Pizza Hut, Taco Bell, Lavazza, Little Sheep, and Huang Ji Huang concepts. The company also operates V-Gold Mall, a mobile e-commerce platform to sell products; and offers online food deliver services. Yum China Holdings, Inc. was founded in 1987 and is headquartered in Shanghai, the People's Republic of China.

About Sportradar Group

Sportradar Group AG, together with its subsidiaries, provides sports data services for the sports betting and media industries in the United Kingdom, the United States, Malta, Switzerland, and internationally. Its sports data services to the bookmaking under the Betradar brand name, and to the international media industry under the Sportradar Media Services brand name. The company offers mission-critical software, data, and content to sports leagues and federations, betting operators, and media companies. It also provides sports entertainment, gaming, and sports solutions, as well as live streaming solution for online, mobile, and retail sports betting. In addition, its software solutions address the entire sports betting value chain from traffic generation and advertising technology to the collection, processing, and extrapolation of data and odds, as well as to visualization solutions, risk management, and platform services. Sportradar Group AG was founded in 2001 and is headquartered in Sankt Gallen, Switzerland.