Critical Analysis: Qudian (NYSE:QD) vs. Prestige Wealth (NASDAQ:PWM)

Qudian (NYSE:QD) and Prestige Wealth (NASDAQ:PWM) are both small-cap finance companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, risk, profitability, institutional ownership, earnings, dividends and analyst recommendations.

Profitability

This table compares Qudian and Prestige Wealth’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Qudian	-134.42%	-2.35%	-2.21%
Prestige Wealth	N/A	N/A	N/A

Earnings & Valuation

This table compares Qudian and Prestige Wealth”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Qudian	$17.79 million	20.64	$5.51 million	($0.30)	-6.10
Prestige Wealth	$350,000.00	19.33	-$1.04 million	N/A	N/A

Qudian has higher revenue and earnings than Prestige Wealth.

Volatility & Risk

Qudian has a beta of 0.61, suggesting that its stock price is 39% less volatile than the S&P 500. Comparatively, Prestige Wealth has a beta of 4.2, suggesting that its stock price is 320% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Qudian and Prestige Wealth, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Qudian	0	0	0	0	N/A
Prestige Wealth	0	0	0	0	N/A

Insider and Institutional Ownership

8.1% of Qudian shares are held by institutional investors. Comparatively, 7.7% of Prestige Wealth shares are held by institutional investors. 25.7% of Qudian shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Qudian beats Prestige Wealth on 5 of the 9 factors compared between the two stocks.

About Qudian

Qudian Inc. operates as a consumer-oriented technology company in the People's Republic of China. The company engages in the operation of online platforms to provide small consumer credit products. It also provides technology development and services; research and development services; and delivery services. The company was founded in 2014 and is headquartered in Xiamen, the People's Republic of China.

About Prestige Wealth

Prestige Wealth Inc., through its subsidiaries, provides wealth management and asset management services. It assists its clients in identifying and purchasing wealth and asset management products. The company offers its services primarily for high net worth and ultra-high net worth individuals, including business owners, executives, heirs of rich families, and other affluent individuals in Asia primarily in the mainland China or Hong Kong. The company was incorporated in 2018 and is based in Central, Hong Kong. Prestige Wealth Inc. is a subsidiary of Prestige Financial Holdings Group Limited.