Comparing JOYY (NASDAQ:YY) and QXO (NASDAQ:QXO)

QXO (NASDAQ:QXO) and JOYY (NASDAQ:YY) are both mid-cap business services companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, dividends, profitability, valuation and earnings.

Insider and Institutional Ownership

58.7% of QXO shares are held by institutional investors. Comparatively, 36.8% of JOYY shares are held by institutional investors. 51.3% of QXO shares are held by insiders. Comparatively, 43.0% of JOYY shares are held 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.

Volatility and Risk

QXO has a beta of 2.32, indicating that its stock price is 132% more volatile than the S&P 500. Comparatively, JOYY has a beta of 0.25, indicating that its stock price is 75% less volatile than the S&P 500.

Valuation and Earnings

This table compares QXO 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
QXO	$54.52 million	132.77	-$1.07 million	($9.12)	-1.94
JOYY	$2.27 billion	0.98	$301.82 million	$4.12	9.42

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
QXO	30.08%	1.58%	1.30%
JOYY	9.53%	4.98%	3.15%

Analyst Ratings

This is a breakdown of recent ratings and price targets for QXO and JOYY, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
QXO	0	0	0	0	0.00
JOYY	0	3	0	0	2.00

JOYY has a consensus target price of $39.67, suggesting a potential upside of 2.21%. Given JOYY’s stronger consensus rating and higher probable upside, analysts plainly believe JOYY is more favorable than QXO.

Summary

JOYY beats QXO on 7 of the 12 factors compared between the two stocks.

About QXO

QXO, Inc. operates as a business application, technology, and consulting company in North America. The company provides solutions for accounting and business management, financial reporting, enterprise resource planning, human capital management, warehouse management systems, customer relationship management, and business intelligence. It also offers value-added services that focuses on consulting and professional, specialized programming, training, and technical support services. In addition, the company provides information technology managed services, such as cybersecurity, application hosting, disaster recovery, business continuity, cloud, and other services; and data back-up, network maintenance, and upgrade services. It serves small and medium-sized businesses primarily in the manufacturing, distribution, and service industries. QXO, Inc. is headquartered in Greenwich, Connecticut.

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.