Fincera (OTCMKTS:YUANF) 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 risk, dividends, profitability, earnings, analyst recommendations, valuation and institutional ownership.
Earnings and Valuation
This table compares Fincera and Hexindai’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Fincera||$205.74 million||3.69||$40.04 million||N/A||N/A|
|Hexindai||$61.33 million||1.86||$5.53 million||$0.10||22.60|
Fincera has higher revenue and earnings than Hexindai.
Insider & Institutional Ownership
4.1% of Hexindai shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
This table compares Fincera and Hexindai’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of current ratings and recommmendations for Fincera and Hexindai, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Volatility & Risk
Fincera has a beta of -0.14, meaning that its share price is 114% less volatile than the S&P 500. Comparatively, Hexindai has a beta of 1, meaning that its share price has a similar volatility profile to the S&P 500.
Fincera pays an annual dividend of $0.30 per share and has a dividend yield of 1.9%. Hexindai pays an annual dividend of $0.25 per share and has a dividend yield of 11.1%. 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.
Fincera beats Hexindai on 6 of the 10 factors compared between the two stocks.
Fincera Inc. focuses on providing online lending and e-commerce services for small and medium-sized businesses (SMBs) and individuals in China. The company operates in two segments, Internet-Based Financial and E-Commerce Services, and Property Lease and Management. The company's financial services platforms include CeraPay, a revolving credit product that processes and settles transactions between its borrowers and merchants; and CeraVest, a peer-to-peer lending platform that provides short-term financing primarily to SMBs. Its e-commerce products comprise TruShip, an online e-commerce platform for trucking industry merchants; AutoChekk, an e-commerce platform for the passenger vehicle industry; and PingPing, an e-commerce platform for small businesses to establish an online presence. The company also owns and leases office space; and operates and manages Shijiazhuang Hilton hotel in the Kaiyuan Finance Center building. The company was formerly known as AutoChina International Limited and changed its name to Fincera Inc. in July 2015. Fincera Inc. was founded in 1994 and is headquartered in Shijiazhuang, the People's Republic of China. Fincera Inc. is a subsidiary of Honest Best International Ltd.
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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