X Financial (XYF) vs. Its Rivals Financial Analysis

X Financial (NYSE:XYF) is one of 120 public companies in the “Consumer Finance” industry, but how does it compare to its peers? We will compare X Financial to related companies based on the strength of its dividends, risk, profitability, institutional ownership, valuation, earnings and analyst recommendations.

Valuation & Earnings

This table compares X Financial and its peers revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
X Financial	$1.09 billion	$209.43 million	2.81
X Financial Competitors	$3.62 billion	$385.17 million	4.49

X Financial’s peers have higher revenue and earnings than X Financial. X Financial is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Risk & Volatility

X Financial has a beta of 0.47, meaning that its share price is 53% less volatile than the S&P 500. Comparatively, X Financial’s peers have a beta of 1.26, meaning that their average share price is 26% more volatile than the S&P 500.

Profitability

This table compares X Financial and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
X Financial	9.94%	9.14%	5.20%
X Financial Competitors	10.42%	-15.79%	2.02%

Dividends

X Financial pays an annual dividend of $0.54 per share and has a dividend yield of 9.8%. X Financial pays out 27.6% of its earnings in the form of a dividend. As a group, “Consumer Finance” companies pay a dividend yield of 6.2% and pay out 34.3% of their earnings in the form of a dividend. X Financial is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for X Financial and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
X Financial	0	1	0	0	2.00
X Financial Competitors	896	3365	5297	276	2.50

As a group, “Consumer Finance” companies have a potential upside of 22.32%. Given X Financial’s peers stronger consensus rating and higher probable upside, analysts plainly believe X Financial has less favorable growth aspects than its peers.

Institutional and Insider Ownership

1.1% of X Financial shares are owned by institutional investors. Comparatively, 45.7% of shares of all “Consumer Finance” companies are owned by institutional investors. 31.6% of X Financial shares are owned by company insiders. Comparatively, 22.0% of shares of all “Consumer Finance” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

X Financial peers beat X Financial on 10 of the 15 factors compared.

X Financial Company Profile

X Financial is a China-based financial technology company that operates an online platform for consumer lending. The platform connects individual borrowers seeking credit with financial institutions and other funding partners. Its services include unsecured personal credit products, such as Xiaoying Card Loan, which provides eligible customers with access to online credit. The company uses digital processes to support customer acquisition, credit assessment, loan facilitation and servicing. Founded in 2014, X Financial serves customers in China.