LendingTree (NASDAQ:TREE) vs. Jiayin Group (NASDAQ:JFIN) Head to Head Contrast

Jiayin Group (NASDAQ:JFIN) and LendingTree (NASDAQ:TREE) are both small-cap finance companies, but which is the better business? We will compare the two companies based on the strength of their valuation, risk, analyst recommendations, profitability, institutional ownership, dividends and earnings.

Earnings and Valuation

This table compares Jiayin Group and LendingTree”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Jiayin Group	$889.76 million	0.10	$219.61 million	$0.64	2.55
LendingTree	$1.12 billion	0.34	$151.31 million	$12.90	2.10

Jiayin Group has higher earnings, but lower revenue than LendingTree. LendingTree is trading at a lower price-to-earnings ratio than Jiayin Group, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

44.1% of Jiayin Group shares are owned by institutional investors. Comparatively, 68.3% of LendingTree shares are owned by institutional investors. 51.2% of Jiayin Group shares are owned by company insiders. Comparatively, 4.0% of LendingTree shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and recommmendations for Jiayin Group and LendingTree, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Jiayin Group	1	0	0	0	1.00
LendingTree	0	2	4	0	2.67

LendingTree has a consensus price target of $56.60, suggesting a potential upside of 109.01%. Given LendingTree’s stronger consensus rating and higher probable upside, analysts clearly believe LendingTree is more favorable than Jiayin Group.

Volatility & Risk

Jiayin Group has a beta of 0.9, suggesting that its stock price is 10% less volatile than the S&P 500. Comparatively, LendingTree has a beta of 2.04, suggesting that its stock price is 104% more volatile than the S&P 500.

Profitability

This table compares Jiayin Group and LendingTree’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Jiayin Group	5.39%	5.02%	2.57%
LendingTree	14.33%	14.57%	4.49%

Summary

LendingTree beats Jiayin Group on 12 of the 14 factors compared between the two stocks.

About Jiayin Group

Jiayin Group Inc., together with its subsidiaries, provides online consumer finance services in the People's Republic of China. The company operates a fintech platform that facilitates connections between individual borrowers and financial institutions. It also offers referral services for investment products offered by the financial service providers; and technology development and services, as well as guarantee services. The company was founded in 2011 and is headquartered in Shanghai, the People's Republic of China. Jiayin Group Inc. operates as a subsidiary of New Dream Capital Holdings Limited.

About LendingTree

LendingTree, Inc., through its subsidiary, operates online consumer platform in the United States. It operates through three segments: Home, Consumer, and Insurance. The Home segment offers purchase mortgage, refinance mortgage, and home equity loans and lines of credit; and real estate brokerage services. The Consumer segment provides credit cards; personal, small business, student, and auto loans; deposit accounts; and other credit products, such as debt settlement services. The Insurance segment includes information, tools, and access to insurance quote products, including home, automobile, and health and Medicare through which consumers are matched with insurance lead aggregators to obtain insurance offers and policies. In addition, the company offers QuoteWizard, a marketplace for insurance comparison; ValuePenguin, a personal finance website that offers consumers objective analysis on various financial topics from insurance to credit cards; and Stash, a consumer investing and banking platform that offers a suite of personal investment accounts, traditional and Roth IRAs, custodial investment accounts, and banking services, including checking accounts and debit cards with a Stock-Back rewards program. The company was formerly known as Tree.com, Inc. and changed its name to LendingTree, Inc. in January 2015. LendingTree, Inc. was incorporated in 1996 and is based in Charlotte, North Carolina.