MGT Capital Investments (OTCMKTS:MGTI) & Yiren Digital (NYSE:YRD) Critical Analysis

MGT Capital Investments (OTCMKTS:MGTI) and Yiren Digital (NYSE:YRD) are both small-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, risk, dividends, valuation and earnings.

Analyst Ratings

This is a summary of recent ratings and recommmendations for MGT Capital Investments and Yiren Digital, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MGT Capital Investments	0	0	0	0	N/A
Yiren Digital	0	0	0	0	N/A

Profitability

This table compares MGT Capital Investments and Yiren Digital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MGT Capital Investments	-1,888.47%	-202.89%	-598.61%
Yiren Digital	40.47%	27.42%	21.39%

Valuation & Earnings

This table compares MGT Capital Investments and Yiren Digital’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MGT Capital Investments	$400,000.00	1.43	-$6.13 million	N/A	N/A
Yiren Digital	$689.53 million	0.57	$292.99 million	$3.33	1.36

Yiren Digital has higher revenue and earnings than MGT Capital Investments.

Volatility and Risk

MGT Capital Investments has a beta of 3.07, indicating that its share price is 207% more volatile than the S&P 500. Comparatively, Yiren Digital has a beta of 0.67, indicating that its share price is 33% less volatile than the S&P 500.

Institutional & Insider Ownership

2.0% of Yiren Digital shares are owned by institutional investors. 3.8% of MGT Capital Investments shares are owned by insiders. Comparatively, 42.2% of Yiren Digital shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Yiren Digital beats MGT Capital Investments on 7 of the 9 factors compared between the two stocks.

About MGT Capital Investments

MGT Capital Investments, Inc. engages in cryptocurrency mining business in the United States. It also leases space to other bitcoin miners; and provides hosting services for owners of mining equipment. The company was incorporated in 1977 and is headquartered in Raleigh, North Carolina.

About Yiren Digital

Yiren Digital Ltd. provides financial services through an AI-powered platform in China. Its platform provides a suite of financial and lifestyle services. The company offers financial services, which provides a portfolio of loan products to borrowers; insurance brokerage services; and consumption and lifestyle services, including non-financial products and services to meet various consumer needs. It supports clients at various growth stages, addressing financing needs arising from consumption and production activities, and augmenting the well-being and security of individuals, families, and businesses. The company was formerly known as Yirendai Ltd. and changed its name to Yiren Digital Ltd. in September 2019. Yiren Digital Ltd. was founded in 2012 and is based in Beijing, the People's Republic of China. Yiren Digital Ltd. operates as a subsidiary of CreditEase Holdings (Cayman) Limited.