Analyzing Jiayin Group (NASDAQ:JFIN) and Burford Capital (NYSE:BUR)

Jiayin Group (NASDAQ:JFIN) and Burford Capital (NYSE:BUR) are both computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, institutional ownership, risk, valuation, dividends, profitability and analyst recommendations.

Dividends

Jiayin Group pays an annual dividend of $0.76 per share and has a dividend yield of 11.9%. Burford Capital pays an annual dividend of $0.12 per share and has a dividend yield of 0.8%. Jiayin Group pays out 22.4% of its earnings in the form of a dividend. Burford Capital pays out 4.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Jiayin Group	23.75%	66.42%	26.64%
Burford Capital	56.17%	20.99%	11.51%

Institutional and Insider Ownership

44.1% of Jiayin Group shares are owned by institutional investors. 51.2% of Jiayin Group shares are owned by company insiders. Comparatively, 0.2% of Burford Capital shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Jiayin Group and Burford Capital’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Jiayin Group	$769.99 million	0.44	$182.77 million	$3.39	1.88
Burford Capital	$1.09 billion	N/A	$610.52 million	$2.74	5.47

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

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Jiayin Group and Burford Capital, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Jiayin Group	0	0	0	0	N/A
Burford Capital	0	0	3	0	3.00

Burford Capital has a consensus target price of $19.00, indicating a potential upside of 26.84%. Given Burford Capital’s higher possible upside, analysts plainly believe Burford Capital is more favorable than Jiayin Group.

Summary

Burford Capital beats Jiayin Group on 7 of the 13 factors compared between the two stocks.

About Jiayin Group

Jiayin Group Inc. provides online consumer finance services in the People's Republic of China. The company operates a fintech platform that facilitates transparent, secure, and fast connections between individual borrowers and financial institutions funding partners. It also offers referral services for investment products offered by the financial service providers; and software development, risk control, marketing support, and IT assistance services. The company was founded in 2011 and is headquartered in Shanghai, the People's Republic of China.

About Burford Capital

Burford Capital Limited provides legal finance products and services worldwide. The company operates through two segments, Capital Provision, and Asset Management and Other Provision. The Capital Provision segment provides capital to the legal industry or in connection with legal matters directly and through investment in private funds; legal risk management services; lower risk legal finance business focusing on pre-settlement litigation matters with lower risk and lower expected returns; post-settlement finance; and complex strategies in which it acts as a principal and acquires assets that are mispriced. The Asset Management and Other Services segment provides services to the legal industry, including litigation insurance. Burford Capital Limited was incorporated in 2009 and is based in Saint Peter Port, Guernsey.