X Financial (NYSE:XYF – Get Free Report) and Atlanticus (NASDAQ:ATLC – Get Free Report) are both small-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, earnings, valuation, risk, profitability and dividends.
Insider and Institutional Ownership
1.1% of X Financial shares are held by institutional investors. Comparatively, 14.2% of Atlanticus shares are held by institutional investors. 31.6% of X Financial shares are held by insiders. Comparatively, 51.0% of Atlanticus shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Earnings and Valuation
This table compares X Financial and Atlanticus”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| X Financial | $1.09 billion | 0.18 | $209.43 million | $1.96 | 2.58 |
| Atlanticus | $1.97 billion | 0.73 | $122.20 million | $7.69 | 12.30 |
X Financial has higher earnings, but lower revenue than Atlanticus. X Financial is trading at a lower price-to-earnings ratio than Atlanticus, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares X Financial and Atlanticus’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| X Financial | 9.94% | 9.14% | 5.20% |
| Atlanticus | 5.80% | 25.17% | 2.15% |
Analyst Ratings
This is a breakdown of recent ratings and target prices for X Financial and Atlanticus, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| X Financial | 0 | 1 | 0 | 0 | 2.00 |
| Atlanticus | 0 | 2 | 5 | 1 | 2.88 |
Atlanticus has a consensus price target of $129.00, indicating a potential upside of 36.36%. Given Atlanticus’ stronger consensus rating and higher probable upside, analysts plainly believe Atlanticus is more favorable than X Financial.
Volatility and Risk
X Financial has a beta of 0.47, indicating that its share price is 53% less volatile than the S&P 500. Comparatively, Atlanticus has a beta of 1.98, indicating that its share price is 98% more volatile than the S&P 500.
Summary
Atlanticus beats X Financial on 12 of the 15 factors compared between the two stocks.
About X Financial
X Financial provides personal finance services in the People’s Republic of China. The company offers services as an online marketplace connecting borrowers and investors or institutional funding partners. Its loan products include Xiaoying credit loan, which consists of Xiaoying card loan; and Xiaoying preferred loan to small business owners. The company also offers Xiaoying housing loan, a home equity loan product for property owners; investment products through Xiaoying wealth management platform, such as funds, money market, and insurance products; and loan facilitation services to other platforms. In addition, it engages in the technology development, service, and sale of products; and provision of guarantee and consulting services. The company was incorporated in 2014 and is headquartered in Shenzhen, the People’s Republic of China.
About Atlanticus
Atlanticus Holdings Corporation, a financial technology company, provides credit and related financial services and products to customers the United States. It operates in two segments, Credit as a Service, and Auto Finance. The Credit as a Service segment originates a range of consumer loan products, such as private label and general purpose credit cards originated by lenders through various channels, including retail and healthcare, direct mail solicitation, digital marketing, and partnerships with third parties; and offers credit to their customers for the purchase of various goods and services, including consumer electronics, furniture, elective medical procedures, healthcare, and home-improvements by partnering with retailers, healthcare providers, and other service providers. This segment also offers loan servicing, such as risk management and customer service outsourcing for third parties; and engages in testing and investment activities in consumer finance technology platforms. The Auto Finance segment purchases and/or services loans secured by automobiles from or for a pre-qualified network of independent automotive dealers and automotive finance companies in the buy-here, pay-here, and used car business. This segment also provides floor plan financing and installment lending products. It also invests in and services portfolios of credit card receivables. The company was founded in 1996 and is headquartered in Atlanta, Georgia.
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