Reviewing Weidai (NYSE:WEI) and CNFinance (NYSE:CNF)

Weidai (NYSE:WEI) and CNFinance (NYSE:CNF) are both small-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, earnings, analyst recommendations, dividends, valuation, institutional ownership and profitability.

Earnings & Valuation

This table compares Weidai and CNFinance’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Weidai $569.19 million 0.75 $87.50 million N/A N/A
CNFinance $622.68 million 0.67 $130.08 million N/A N/A

CNFinance has higher revenue and earnings than Weidai.

Insider and Institutional Ownership

0.8% of Weidai shares are held by institutional investors. Comparatively, 0.7% of CNFinance shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Weidai 12.91% 19.17% 8.06%
CNFinance 18.53% 22.19% 4.07%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Weidai and CNFinance, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Weidai 0 0 2 0 3.00
CNFinance 0 0 0 0 N/A

Weidai presently has a consensus price target of $13.00, suggesting a potential upside of 113.11%. Given Weidai’s higher probable upside, analysts clearly believe Weidai is more favorable than CNFinance.

Summary

Weidai beats CNFinance on 6 of the 10 factors compared between the two stocks.

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.

About CNFinance

CNFinance Holdings Limited, through its subsidiaries, provides home equity loan services in the People's Republic of China. It offers micro credit loan services for micro and small-enterprise owners, and loan lending agency services for banks. The company also provides bridge loan products, which are unsecured short-term loans to pay off borrowers' existing loans secured by real property. It operates through a network of 73 branches and sub-branches. The company was founded in 1999 and is headquartered in Guangzhou, the People's Republic of China.

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