Head-To-Head Analysis: LexinFintech (NASDAQ:LX) and Jiayin Group (NASDAQ:JFIN)

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

Analyst Recommendations

This is a summary of current recommendations and price targets for LexinFintech and Jiayin Group, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
LexinFintech 0 0 4 0 3.00
Jiayin Group 0 0 1 0 3.00

LexinFintech currently has a consensus target price of $17.53, suggesting a potential upside of 54.21%. Jiayin Group has a consensus target price of $17.00, suggesting a potential upside of 23.19%. Given LexinFintech’s higher possible upside, analysts plainly believe LexinFintech is more favorable than Jiayin Group.

Earnings & Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
LexinFintech $1.10 billion 1.81 $287.59 million $1.60 7.11
Jiayin Group $419.16 million 1.76 $88.98 million $0.44 31.36

LexinFintech has higher revenue and earnings than Jiayin Group. LexinFintech 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 and Insider Ownership

22.6% of LexinFintech shares are owned by institutional investors. Comparatively, 0.1% of Jiayin Group shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
LexinFintech 26.86% 52.70% 17.88%
Jiayin Group N/A N/A N/A

Summary

LexinFintech beats Jiayin Group on 10 of the 11 factors compared between the two stocks.

About LexinFintech

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.

About Jiayin Group

Jiayin Group Inc. operates as an online individual finance marketplace that connects individual investors and individual borrowers in China. It operates a secure and open platform that facilitates transparent, secure, and fast connections between investors and borrowers. The company was founded in 2011 and is headquartered in Shanghai, China.

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