Analyzing X Financial (NYSE:XYF) and NerdWallet (NASDAQ:NRDS)

X Financial (NYSE:XYF) and NerdWallet (NASDAQ:NRDS) are both small-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their valuation, profitability, dividends, analyst recommendations, institutional ownership, earnings and risk.

Risk and Volatility

X Financial has a beta of 0.56, meaning that its share price is 44% less volatile than the S&P 500. Comparatively, NerdWallet has a beta of 1.34, meaning that its share price is 34% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings for X Financial and NerdWallet, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
X Financial	0	1	0	0	2.00
NerdWallet	2	2	4	0	2.25

NerdWallet has a consensus price target of $12.83, indicating a potential upside of 52.41%. Given NerdWallet’s stronger consensus rating and higher probable upside, analysts plainly believe NerdWallet is more favorable than X Financial.

Insider & Institutional Ownership

1.2% of X Financial shares are held by institutional investors. Comparatively, 38.8% of NerdWallet shares are held by institutional investors. 31.6% of X Financial shares are held by insiders. Comparatively, 52.8% of NerdWallet shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares X Financial and NerdWallet’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
X Financial	19.09%	19.27%	10.80%
NerdWallet	8.11%	18.33%	14.80%

Valuation & Earnings

This table compares X Financial and NerdWallet”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
X Financial	$1.09 billion	0.18	$209.43 million	$4.77	1.03
NerdWallet	$836.60 million	0.67	$48.70 million	$0.93	9.05

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

Summary

NerdWallet beats X Financial on 9 of the 14 factors compared between the two stocks.

About X Financial

X Financial provides personal finance services in the People’s Republic of China. The company offers services as an online marketplace connecting borrowers and investors or institutional funding partners. Its loan products include Xiaoying credit loan, which consists of Xiaoying card loan; and Xiaoying preferred loan to small business owners. The company also offers Xiaoying housing loan, a home equity loan product for property owners; investment products through Xiaoying wealth management platform, such as funds, money market, and insurance products; and loan facilitation services to other platforms. In addition, it engages in the technology development, service, and sale of products; and provision of guarantee and consulting services. The company was incorporated in 2014 and is headquartered in Shenzhen, the People’s Republic of China.

About NerdWallet

NerdWallet, Inc. operates a digital platform that provides consumer-driven advice about personal finance by connecting individuals and small and mid-sized businesses with financial products providers in the United States, the United Kingdom, Australia, and Canada. Its platform offers guidance to consumers through educational content, tools and calculators, and product marketplaces, as well as through NerdWallet app for various financial products, including credit cards, mortgages, insurance, SMB products, personal loans, banking, investing, and student loans. The company was founded in 2009 and is based in San Francisco, California.