Jiayin Group (NASDAQ:JFIN – Get Free Report) and Katapult (NASDAQ:KPLT – Get Free Report) are both small-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, dividends, valuation, profitability, institutional ownership, risk and analyst recommendations.
Risk & Volatility
Jiayin Group has a beta of 0.96, indicating that its stock price is 4% less volatile than the S&P 500. Comparatively, Katapult has a beta of 1.51, indicating that its stock price is 51% more volatile than the S&P 500.
Valuation and Earnings
This table compares Jiayin Group and Katapult”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 | $5.20 billion | 0.02 | $219.61 million | $2.52 | 0.94 |
| Katapult | $291.76 million | 0.13 | $1.37 million | $1.37 | 5.84 |
Jiayin Group has higher revenue and earnings than Katapult. Jiayin Group is trading at a lower price-to-earnings ratio than Katapult, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of current ratings and target prices for Jiayin Group and Katapult, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Jiayin Group | 1 | 0 | 0 | 0 | 1.00 |
| Katapult | 1 | 1 | 0 | 0 | 1.50 |
Katapult has a consensus target price of $10.00, indicating a potential upside of 25.00%. Given Katapult’s stronger consensus rating and higher probable upside, analysts plainly believe Katapult is more favorable than Jiayin Group.
Institutional & Insider Ownership
44.1% of Jiayin Group shares are owned by institutional investors. Comparatively, 26.8% of Katapult shares are owned by institutional investors. 51.2% of Jiayin Group shares are owned by company insiders. Comparatively, 8.0% of Katapult shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Profitability
This table compares Jiayin Group and Katapult’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Jiayin Group | 17.79% | 21.67% | 11.33% |
| Katapult | 3.60% | -26.41% | 10.86% |
Summary
Jiayin Group beats Katapult on 8 of the 13 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 Katapult
Katapult Holdings, Inc., an e-commerce focused financial technology company, provides e-commerce point-of-sale lease-purchase options for nonprime consumers in the United States. The company's technology platform provides nonprime consumers with a lease purchase option to enable them to obtain durable goods from its network of e-commerce retailers. It also offers Katapult Pay, a one-time use virtual card technology that makes lease purchasing and transactions. The company was formerly known as Cognical Holdings, Inc. and changed its name to Katapult Holdings, Inc. in February 2020. The company is headquartered in Plano, Texas.
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