Contrasting Yelp (NYSE:YELP) & China Internet Cafe Holdings Group (NYSE:CICC)

China Internet Cafe Holdings Group (OTCMKTS:CICC) and Yelp (NYSE:YELP) are both consumer cyclical companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, risk, earnings, dividends, analyst recommendations, institutional ownership and profitability.

Profitability

This table compares China Internet Cafe Holdings Group and Yelp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
China Internet Cafe Holdings Group N/A N/A N/A
Yelp 6.17% 4.09% 3.55%

Analyst Ratings

This is a summary of recent ratings and price targets for China Internet Cafe Holdings Group and Yelp, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
China Internet Cafe Holdings Group 0 0 0 0 N/A
Yelp 1 14 8 0 2.30

Yelp has a consensus price target of $39.44, suggesting a potential upside of 15.40%. Given Yelp’s higher probable upside, analysts plainly believe Yelp is more favorable than China Internet Cafe Holdings Group.

Insider & Institutional Ownership

95.4% of Yelp shares are held by institutional investors. 8.2% of Yelp shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Valuation and Earnings

This table compares China Internet Cafe Holdings Group and Yelp’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
China Internet Cafe Holdings Group N/A N/A N/A N/A N/A
Yelp $942.77 million 2.80 $55.35 million $0.45 75.96

Yelp has higher revenue and earnings than China Internet Cafe Holdings Group.

Summary

Yelp beats China Internet Cafe Holdings Group on 8 of the 8 factors compared between the two stocks.

China Internet Cafe Holdings Group Company Profile

China Internet Cafe Holdings Group, Inc., through its subsidiary, Junlong Culture Communication Co. Ltd., owns and operates a chain of Internet cafes in the People's Republic of China. It provides Internet access to mature students and migrant workers; and online games, movies, music, and online chatting software. The company also sells snacks, drinks, and game access cards, as well as Internet café memberships. It operates approximately 9 Internet cafés with approximately 1,057 computers in Shenzhen, Guangdong, the People's Republic of China. The company was founded in 2003 and is headquartered in Shenzhen, the People's Republic of China.

Yelp Company Profile

Yelp Inc. operates a platform that connects consumers with local businesses in the United States, Canada, and internationally. The company's platform covers various local business categories, including restaurants, shopping, beauty and fitness, arts, entertainment and events, home and local services, health, nightlife, travel and hotel, auto, and others. It provides free and paid advertising products to businesses, as well as enables businesses to deliver targeted search advertising to local audiences through its Website and mobile application; and business listing products. The company's Yelp platform enables consumers to order flowers, purchase event tickets, and book spa and salon appointments. In addition, it offers Yelp Deals that allow local business owners to create promotional discounted deals for their products and services; and Gift Certificates products for local business owners to sell full-price gift certificates directly to customers through their business listing pages. Further, the company provides other services comprising Yelp Reservations that provide restaurants, nightlife, and other venues with the ability to offer online reservations directly from their Yelp business listing pages; and Yelp Waitlist, a subscription-based waitlist management solution that allows consumers to check wait times and join waitlists remotely, as well as businesses to manage seating and server rotation. Its other services also include Yelp WiFi Marketing product for businesses to create on-premises WiFi access for customers and advertise products on the WiFi log-in page, as well as collect contact and social media information from customers. The company offers its products directly through its sales force; indirectly through partners; and online through its Website, as well as non-advertising partner arrangements. Yelp Inc. was founded in 2004 and is headquartered in San Francisco, California.

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