Yalla Group (NYSE:YALA) & Grindr (NYSE:GRND) Critical Review

Yalla Group (NYSE:YALA) and Grindr (NYSE:GRND) are both computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, analyst recommendations, earnings, valuation, institutional ownership, dividends and profitability.

Valuation & Earnings

This table compares Yalla Group and Grindr”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Yalla Group	$339.68 million	2.86	$117.34 million	$0.74	8.28
Grindr	$344.64 million	11.42	-$55.77 million	($0.79)	-23.92

Yalla Group has higher earnings, but lower revenue than Grindr. Grindr is trading at a lower price-to-earnings ratio than Yalla 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 Yalla Group and Grindr, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Yalla Group	0	0	0	0	0.00
Grindr	0	0	5	0	3.00

Grindr has a consensus target price of $20.00, indicating a potential upside of 5.85%. Given Grindr’s stronger consensus rating and higher possible upside, analysts clearly believe Grindr is more favorable than Yalla Group.

Profitability

This table compares Yalla Group and Grindr’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Yalla Group	40.72%	21.80%	19.28%
Grindr	-16.27%	-177.83%	9.57%

Institutional and Insider Ownership

4.7% of Yalla Group shares are owned by institutional investors. Comparatively, 7.2% of Grindr shares are owned by institutional investors. 52.2% of Yalla Group shares are owned by insiders. Comparatively, 76.4% of Grindr shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility & Risk

Yalla Group has a beta of 0.96, indicating that its stock price is 4% less volatile than the S&P 500. Comparatively, Grindr has a beta of 0.31, indicating that its stock price is 69% less volatile than the S&P 500.

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 Grindr

Grindr Inc. operates social network and dating application for the lesbian, gay, bisexual, transgender, and queer (LGBTQ) communities worldwide. Its platform enables LGBTQ people to find and engage with each other, share content and experiences, and express themselves. The company offers ad-supported service and a premium subscription version. Grindr Inc. was founded in 2009 and is headquartered in West Hollywood, California.