Critical Comparison: Yum China (NYSE:YUMC) and Sportradar Group (NASDAQ:SRAD)
by Danessa Lincoln · The Markets DailySportradar Group (NASDAQ:SRAD – Get Free Report) and Yum China (NYSE:YUMC – Get Free Report) are both consumer discretionary companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, institutional ownership, valuation, analyst recommendations, dividends, earnings and risk.
Risk and Volatility
Sportradar Group has a beta of 1.66, suggesting that its stock price is 66% more volatile than the S&P 500. Comparatively, Yum China has a beta of 0.06, suggesting that its stock price is 94% less volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent ratings and price targets for Sportradar Group and Yum China, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Sportradar Group | 0 | 9 | 9 | 1 | 2.58 |
| Yum China | 0 | 1 | 3 | 0 | 2.75 |
Sportradar Group currently has a consensus price target of $17.97, indicating a potential upside of 32.71%. Yum China has a consensus price target of $59.21, indicating a potential upside of 18.53%. Given Sportradar Group’s higher probable upside, equities analysts clearly believe Sportradar Group is more favorable than Yum China.
Institutional & Insider Ownership
85.6% of Yum China shares are held by institutional investors. 85.0% of Sportradar Group shares are held by insiders. Comparatively, 0.4% of Yum China shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Profitability
This table compares Sportradar Group and Yum China’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Sportradar Group | 1.47% | 2.57% | 0.80% |
| Yum China | 7.90% | 16.49% | 9.27% |
Valuation and Earnings
This table compares Sportradar Group and Yum China”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Sportradar Group | $1.46 billion | 2.78 | $113.50 million | $0.08 | 169.25 |
| Yum China | $12.71 billion | 1.35 | $929.00 million | $2.88 | 17.35 |
Yum China has higher revenue and earnings than Sportradar Group. Yum China is trading at a lower price-to-earnings ratio than Sportradar Group, indicating that it is currently the more affordable of the two stocks.
Summary
Yum China beats Sportradar Group on 8 of the 15 factors compared between the two stocks.
About Sportradar Group
Sportradar Group AG, together with its subsidiaries, provides sports data services for the sports betting and media industries in the United Kingdom, the United States, Malta, Switzerland, and internationally. Its sports data services to the bookmaking under the Betradar brand name, and to the international media industry under the Sportradar Media Services brand name. The company offers mission-critical software, data, and content to sports leagues and federations, betting operators, and media companies. It also provides sports entertainment, gaming, and sports solutions, as well as live streaming solution for online, mobile, and retail sports betting. In addition, its software solutions address the entire sports betting value chain from traffic generation and advertising technology to the collection, processing, and extrapolation of data and odds, as well as to visualization solutions, risk management, and platform services. Sportradar Group AG was founded in 2001 and is headquartered in Sankt Gallen, Switzerland.
About Yum China
Yum China Holdings, Inc. owns, operates, and franchises restaurants in the People's Republic of China. The company operates through KFC, Pizza Hut, and All Other segments. It operates restaurants under the KFC, Pizza Hut, Taco Bell, Lavazza, Little Sheep, and Huang Ji Huang concepts. The company also operates V-Gold Mall, a mobile e-commerce platform to sell products; and offers online food deliver services. Yum China Holdings, Inc. was founded in 1987 and is headquartered in Shanghai, the People's Republic of China.