Critical Comparison: Curo Group (NYSE:CURO) versus Hexindai (NYSE:HX)

Curo Group (NYSE:CURO) and Hexindai (NASDAQ:HX) are both small-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, profitability, institutional ownership, valuation, dividends, analyst recommendations and risk.

Profitability

This table compares Curo Group and Hexindai’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Curo Group -3.06% 425.17% 9.06%
Hexindai 9.02% 4.10% 3.40%

Institutional and Insider Ownership

48.0% of Curo Group shares are owned by institutional investors. Comparatively, 4.1% of Hexindai shares are owned by institutional investors. 44.5% of Curo Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings for Curo Group and Hexindai, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Curo Group 0 0 3 0 3.00
Hexindai 0 0 0 0 N/A

Curo Group currently has a consensus target price of $29.00, indicating a potential upside of 184.59%. Given Curo Group’s higher probable upside, analysts plainly believe Curo Group is more favorable than Hexindai.

Dividends

Hexindai pays an annual dividend of $0.25 per share and has a dividend yield of 10.3%. Curo Group does not pay a dividend. Hexindai pays out 250.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Earnings & Valuation

This table compares Curo Group and Hexindai’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Curo Group $1.09 billion 0.43 -$22.05 million $1.73 5.89
Hexindai $61.33 million 2.00 $5.53 million $0.10 24.30

Hexindai has lower revenue, but higher earnings than Curo Group. Curo Group is trading at a lower price-to-earnings ratio than Hexindai, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Curo Group has a beta of 3.72, suggesting that its stock price is 272% more volatile than the S&P 500. Comparatively, Hexindai has a beta of 1.01, suggesting that its stock price is 1% more volatile than the S&P 500.

Summary

Curo Group beats Hexindai on 10 of the 15 factors compared between the two stocks.

About Curo Group

CURO Group Holdings Corp., a diversified consumer finance company, provides consumer finance to a range of underbanked consumers in the United States, Canada, and the United Kingdom. It offers unsecured installment loans, secured installment loans, open-end loans, and single-pay loans, as well as ancillary financial products, including check cashing, proprietary reloadable prepaid debit cards, credit protection insurance, gold buying, retail installment sales, and money transfer services. The company operates under the Speedy Cash, Rapid Cash, Cash Money, Avío Credit, and Opt+ brands; and online as Wage Day Advance and Juo Loans, as well as offers installment loans online under the LendDirect brand. The company was formerly known as Speedy Group Holdings Corp. and changed its name to CURO Group Holdings Corp. in May 2016. CURO Group Holdings Corp. was founded in 1997 and is headquartered in Wichita, Kansas.

About Hexindai

Hexindai Inc. operates a consumer lending marketplace that facilitates loans in China. It primarily focuses on facilitating medium-sized credit loans. The company provides borrowers a range of products based on customer segmentation data and tailored to the specific needs of the emerging middle class; and investors various types of investment products. The company was founded in 2013 and is headquartered in Beijing, China.

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