Critical Review: Upwork (NASDAQ:UPWK) & JOYY (NASDAQ:YY)

Upwork (NASDAQ:UPWKGet Free Report) and JOYY (NASDAQ:YYGet Free Report) are both mid-cap computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, profitability, dividends, institutional ownership, valuation, analyst recommendations and risk.

Valuation & Earnings

This table compares Upwork 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
Upwork $618.32 million 3.24 -$89.89 million ($0.19) -77.42
JOYY $2.41 billion 0.87 $128.89 million ($1.15) -29.40

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

Analyst Ratings

This is a summary of recent ratings and recommmendations for Upwork and JOYY, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Upwork 0 5 6 0 2.55
JOYY 0 3 1 0 2.25

Upwork currently has a consensus target price of $15.64, suggesting a potential upside of 6.30%. JOYY has a consensus target price of $40.33, suggesting a potential upside of 19.29%. Given JOYY’s higher probable upside, analysts clearly believe JOYY is more favorable than Upwork.

Profitability

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

Net Margins Return on Equity Return on Assets
Upwork 1.95% 4.38% 1.34%
JOYY -5.28% 4.84% 2.94%

Insider & Institutional Ownership

75.5% of Upwork shares are owned by institutional investors. Comparatively, 36.8% of JOYY shares are owned by institutional investors. 9.0% of Upwork shares are owned by company insiders. Comparatively, 43.0% of JOYY shares are owned 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.

Volatility & Risk

Upwork has a beta of 1.73, suggesting that its stock price is 73% more volatile than the S&P 500. Comparatively, JOYY has a beta of 0.39, suggesting that its stock price is 61% less volatile than the S&P 500.

About Upwork

(Get Free Report)

Upwork Inc., together with its subsidiaries, operates a work marketplace that connects businesses with various independent professionals and agencies in the United States, India, the Philippines, and internationally. The company's work marketplace provides access to talent with various skills across a range of categories, including sales and marketing, customer service, data science and analytics, design and creative, web, mobile, and software development. Its work marketplace also enables clients to streamline workflows, such as talent sourcing, outreach, and contracting. The company's work marketplace offers access to various functionalities for remote engagements with talent, including communication and collaboration, ability to receive talent invoices through their work marketplace, and payment protection. Its marketplace offerings include Upwork Basic, Upwork Plus, Upwork Enterprise, and Upwork Payroll, as well as managed and internet escrow agency services. The company was formerly known as Elance-oDesk, Inc. and changed its name to Upwork Inc. in May 2015. Upwork Inc. was incorporated in 2013 and is headquartered in San Francisco, California.

About JOYY

(Get Free Report)

JOYY Inc., together with its subsidiaries, operates social media platforms that offer users engaging and experience across various video-based social platforms. The company operates Bigo Live, a social live streaming platform that allows users to live stream specific moments, such as showcase talents, socialize, and connect with other users worldwide; Likee, a short-form video social platform that focuses on enabling users to create short-form video; Hago, a multiuser social networking platform that provides casual games; imo, an instant messaging application with functions, including video calls and other communication tools, such as group calls, document sharing, etc.; and Shopline, a smart commerce enabler that provides an integrated omnichannel platform for merchants to create and grow brands online and reach customers. 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.

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