Financial Analysis: 360 Finance (NASDAQ:QFIN) and Weidai (NASDAQ:WEI)

360 Finance (NASDAQ:QFIN) and Weidai (NYSE:WEI) are both small-cap computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their institutional ownership, risk, valuation, earnings, analyst recommendations, profitability and dividends.

Profitability

This table compares 360 Finance and Weidai’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
360 Finance N/A N/A N/A
Weidai 12.91% 19.17% 8.06%

Analyst Ratings

This is a summary of current ratings and target prices for 360 Finance and Weidai, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
360 Finance 0 0 2 0 3.00
Weidai 1 0 1 0 2.00

360 Finance currently has a consensus price target of $29.00, indicating a potential upside of 237.21%. Weidai has a consensus price target of $9.20, indicating a potential upside of 52.57%. Given 360 Finance’s stronger consensus rating and higher probable upside, equities analysts clearly believe 360 Finance is more favorable than Weidai.

Earnings and Valuation

This table compares 360 Finance and Weidai’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
360 Finance $646.79 million 1.91 $173.56 million N/A N/A
Weidai $569.19 million 0.75 $87.50 million N/A N/A

360 Finance has higher revenue and earnings than Weidai.

Institutional & Insider Ownership

9.9% of 360 Finance shares are owned by institutional investors. Comparatively, 0.8% of Weidai shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

360 Finance beats Weidai on 7 of the 10 factors compared between the two stocks.

About 360 Finance

360 Finance, Inc. operates a digital consumer finance platform in China. Its platform provides online consumer finance products to prime and underserved borrowers. The company was founded in 2016 and is headquartered in Shanghai, China.

About Weidai

Weidai Ltd., through its subsidiaries, provides auto-backed financing solutions in the People's Republic of China. Its auto-backed financing platform connects borrowers primarily mall and micro enterprise owners with online investors and institutional funding partners. The company was founded in 2011 and is headquartered in Hangzhou, the People's Republic of China.

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