Hexindai (NASDAQ:HX) and LexinFintech (NASDAQ:LX) Head to Head Contrast

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Hexindai (NASDAQ:HX) and LexinFintech (NASDAQ:LX) are both small-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, risk, dividends, profitability, earnings, institutional ownership and valuation.

Volatility & Risk

Hexindai has a beta of 1, suggesting that its share price has a similar volatility profile to the S&P 500.Comparatively, LexinFintech has a beta of 1.99, suggesting that its share price is 99% more volatile than the S&P 500.

Valuation & Earnings

This table compares Hexindai and LexinFintech’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Hexindai $61.33 million 1.86 $5.53 million $0.10 22.60
LexinFintech $1.10 billion 1.49 $287.59 million $1.60 6.30

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

Profitability

This table compares Hexindai and LexinFintech’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hexindai 9.02% 4.10% 3.40%
LexinFintech 27.22% 59.67% 16.12%

Analyst Recommendations

This is a summary of recent ratings for Hexindai and LexinFintech, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hexindai 0 0 0 0 N/A
LexinFintech 0 0 4 0 3.00

LexinFintech has a consensus target price of $16.20, suggesting a potential upside of 60.71%. Given LexinFintech’s higher probable upside, analysts clearly believe LexinFintech is more favorable than Hexindai.

Institutional and Insider Ownership

4.1% of Hexindai shares are owned by institutional investors. Comparatively, 15.5% of LexinFintech shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

LexinFintech beats Hexindai on 10 of the 12 factors compared between the two stocks.

Hexindai Company Profile

Hexindai Inc. operates a consumer lending marketplace that facilitates loans in China. It primarily focuses on facilitating medium-sized credit loans. The company provides borrowers a range of products based on customer segmentation data and tailored to the specific needs of the emerging middle class; and investors various types of investment products. The company was founded in 2013 and is headquartered in Beijing, China.

LexinFintech Company Profile

LexinFintech Holdings Ltd., through its subsidiaries, operates as an online consumer finance platform for young adults in the People's Republic of China. The company operates Fenqile.com, a retail and online consumer finance platform that offers installment purchase loans, personal installment loans, and other loan products, as well as provides online direct sales with installment payment terms. It also matches customer loans with diversified funding sources, including individual investors on its Juzi Licai online investment platform, third-party commercial banks, consumer finance companies, institutional funding partners in its direct lending programs, investors of its asset-backed securities, and other licensed financial institutions. The company was formerly known as Staging Finance Holding Ltd. and changed its name to LexinFintech Holdings Ltd. in March 2017. LexinFintech Holdings Ltd. was founded in 2013 and is headquartered in Shenzhen, the People's Republic of China.

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