Financial Analysis: Magic Empire Global (NASDAQ:MEGL) and Senmiao Technology (NASDAQ:AIHS)

Magic Empire Global (NASDAQ:MEGL) and Senmiao Technology (NASDAQ:AIHS) are both small-cap finance companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, profitability, dividends, analyst recommendations, valuation, institutional ownership and risk.

Valuation and Earnings

This table compares Magic Empire Global and Senmiao Technology’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Magic Empire Global	$1.77 million	7.84	-$490,000.00	N/A	N/A
Senmiao Technology	$8.08 million	1.03	-$3.11 million	($0.45)	-1.93

Magic Empire Global has higher earnings, but lower revenue than Senmiao Technology.

Analyst Ratings

This is a summary of recent ratings and price targets for Magic Empire Global and Senmiao Technology, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Magic Empire Global	0	0	0	0	N/A
Senmiao Technology	0	0	0	0	N/A

Volatility & Risk

Magic Empire Global has a beta of 3.25, meaning that its share price is 225% more volatile than the S&P 500. Comparatively, Senmiao Technology has a beta of 0.81, meaning that its share price is 19% less volatile than the S&P 500.

Profitability

This table compares Magic Empire Global and Senmiao Technology’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Magic Empire Global	N/A	N/A	N/A
Senmiao Technology	-50.42%	-53.30%	-28.00%

Institutional & Insider Ownership

0.5% of Magic Empire Global shares are owned by institutional investors. Comparatively, 0.4% of Senmiao Technology shares are owned by institutional investors. 63.0% of Magic Empire Global shares are owned by company insiders. Comparatively, 2.3% of Senmiao Technology shares are owned by company insiders. 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

Magic Empire Global beats Senmiao Technology on 8 of the 9 factors compared between the two stocks.

About Magic Empire Global

Magic Empire Global Limited engages in the provision of corporate finance advisory services and underwriting services in Hong Kong. The company provides initial public offering sponsorship, financial and independent financial advisory, financial advisory, post-listing compliance advisory, and underwriting services to corporations. The company was incorporated in 2016 and is headquartered in Central, Hong Kong.

About Senmiao Technology

Senmiao Technology Limited engages in the automobile transaction and related services business in the People's Republic of China. It operates through two segments, Automobile Transaction and Related Services, and Online Ride-Hailing Platform Services. The company offers car rental services to individual customers; and auto finance solutions through financing leases. It also engages in automobile sales comprising sale of new purchased or used cars; and the provision of supporting services, as well as auto management and guarantee services provided to online ride-hailing drivers. In addition, the company provides new energy vehicles leasing, automobile purchase, and management services, such as ride-hailing driver training, assisting with a series of administrative procedures, and other consulting services, as well as credit assessment, preparation of financing application materials, assistance with closing of financing transactions, license and plate registration, payment of taxes and fees, purchase of insurance, installation of GPS devices, ride-hailing driver qualification, and other administrative procedures. Further, it operates Xixingtianxia, an online ride-hailing platform that enables qualified ride-hailing drivers to provide transportation services mainly in Chengdu, Changsha, Guangzhou, and other 23 cities in China. The company was founded in 2014 and is based in Chengdu, the People's Republic of China.