CNFinance (NYSE:CNF – Get Free Report) and Forge Global (NYSE:FRGE – Get Free Report) are both small-cap finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, dividends, profitability, earnings, valuation, institutional ownership and analyst recommendations.
Risk and Volatility
CNFinance has a beta of 0.17, suggesting that its stock price is 83% less volatile than the S&P 500. Comparatively, Forge Global has a beta of 2.18, suggesting that its stock price is 118% more volatile than the S&P 500.
Analyst Ratings
This is a summary of recent ratings and price targets for CNFinance and Forge Global, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CNFinance | 1 | 0 | 0 | 0 | 1.00 |
| Forge Global | 1 | 4 | 0 | 0 | 1.80 |
Forge Global has a consensus price target of $45.00, indicating a potential upside of 0.00%. Given Forge Global’s stronger consensus rating and higher possible upside, analysts plainly believe Forge Global is more favorable than CNFinance.
Valuation and Earnings
This table compares CNFinance and Forge Global”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| CNFinance | $80.76 million | 0.15 | -$65.43 million | $1.40 | 1.30 |
| Forge Global | $92.88 million | 6.71 | -$66.33 million | ($5.20) | -8.65 |
CNFinance has higher earnings, but lower revenue than Forge Global. Forge Global is trading at a lower price-to-earnings ratio than CNFinance, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
40.7% of Forge Global shares are owned by institutional investors. 25.8% of CNFinance shares are owned by insiders. Comparatively, 4.5% of Forge Global shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Profitability
This table compares CNFinance and Forge Global’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| CNFinance | N/A | N/A | N/A |
| Forge Global | -71.87% | -29.06% | -24.63% |
Summary
CNFinance beats Forge Global on 7 of the 13 factors compared between the two stocks.
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 financial institutions. The company provides bridge loan products, which are unsecured short-term loans to pay off borrowers' existing loans secured by real property. It operates approximately 87 branches and sub-branches in China. The company was founded in 1999 and is headquartered in Guangzhou, the People's Republic of China.
About Forge Global
Forge Global Holdings, Inc. operates a financial services platform in California. The company's platform solutions include trading solutions, a platform that connects investors with private company stockholders and enables them to facilitate private share transactions; and custody solutions, a non-depository trust company that enables clients to securely custody and manage assets through an online portal. It also provides data solutions, such as information and insight to navigate, analyze, and make investment decisions to market participants in the private market. The company was founded in 2014 and is headquartered in San Francisco, California.
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