Head-To-Head Review: Renren (RENN) versus Its Competitors

Renren (NYSE: RENN) is one of 61 public companies in the “Data processing & preparation” industry, but how does it contrast to its peers? We will compare Renren to related businesses based on the strength of its earnings, institutional ownership, analyst recommendations, profitability, valuation, risk and dividends.

Profitability

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This table compares Renren and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Renren -119.20% -20.63% -12.83%
Renren Competitors -18.25% -66.08% -6.06%

Analyst Recommendations

This is a breakdown of current ratings and price targets for Renren and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Renren 0 0 0 0 N/A
Renren Competitors 312 1500 2190 64 2.49

As a group, “Data processing & preparation” companies have a potential upside of 2.83%. Given Renren’s peers higher possible upside, analysts clearly believe Renren has less favorable growth aspects than its peers.

Insider and Institutional Ownership

2.0% of Renren shares are held by institutional investors. Comparatively, 59.4% of shares of all “Data processing & preparation” companies are held by institutional investors. 18.8% of shares of all “Data processing & preparation” companies are held by company 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.

Earnings & Valuation

This table compares Renren and its peers gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Renren $63.36 million -$185.35 million -3.56
Renren Competitors $928.00 million $44.64 million 17.22

Renren’s peers have higher revenue and earnings than Renren. Renren is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Volatility and Risk

Renren has a beta of 0.9, meaning that its share price is 10% less volatile than the S&P 500. Comparatively, Renren’s peers have a beta of 0.57, meaning that their average share price is 43% less volatile than the S&P 500.

Summary

Renren peers beat Renren on 8 of the 10 factors compared.

About Renren

Renren Inc. operates a social networking Internet platform in the People's Republic of China. It operates through two segments, Renren and Internet Finance. The company operates Renren.com and Renren Mobile App that enable users to communicate and stay connected with friends, classmates, family members, and co-workers; and woxiu.com, a PC-based social video platform for users to stream their performances live to viewers. It also operates Renren Licai, a financing platform, as well as offers credit financing to used automobile dealers. The company was formerly known as Oak Pacific Interactive and changed its name to Renren Inc. in December 2010. Renren Inc. was founded in 2002 and is headquartered in Beijing, the People's Republic of China.

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