Head to Head Comparison: X Financial (NYSE:XYF) vs. Hut 8 (NASDAQ:HUT)

X Financial (NYSE:XYF) and Hut 8 (NASDAQ:HUT) are both small-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, valuation, institutional ownership, earnings, analyst recommendations, risk and profitability.

Analyst Ratings

This is a breakdown of recent ratings and target prices for X Financial and Hut 8, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
X Financial	0	0	0	0	N/A
Hut 8	0	0	6	0	3.00

Hut 8 has a consensus target price of $16.50, suggesting a potential upside of 10.74%. Given Hut 8’s higher probable upside, analysts plainly believe Hut 8 is more favorable than X Financial.

Profitability

This table compares X Financial and Hut 8’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
X Financial	25.38%	20.63%	10.74%
Hut 8	N/A	N/A	N/A

Earnings & Valuation

This table compares X Financial and Hut 8″s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
X Financial	$2.23 billion	0.15	$167.16 million	$3.54	1.89
Hut 8	$115.90 million	11.71	-$186.77 million	N/A	N/A

X Financial has higher revenue and earnings than Hut 8.

Institutional & Insider Ownership

1.1% of X Financial shares are owned by institutional investors. Comparatively, 31.8% of Hut 8 shares are owned by institutional investors. 31.6% of X Financial shares are owned by insiders. Comparatively, 12.0% of Hut 8 shares are owned by insiders. 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.

Risk and Volatility

X Financial has a beta of 0.29, suggesting that its stock price is 71% less volatile than the S&P 500. Comparatively, Hut 8 has a beta of 4.05, suggesting that its stock price is 305% more volatile than the S&P 500.

Summary

X Financial beats Hut 8 on 6 of the 11 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 Hut 8

Hut 8 Corp., together with its subsidiaries, acquires, builds, manages, and operates data centers for digital assets mining, computing, and artificial intelligence in the United States. It operates in four segments: Digital Assets Mining, Managed Services, High Performance Computing Colocation and Cloud, and Other. The company mines Bitcoin. It also offers managed services for energy infrastructure development, such as site design, procurement, and construction management; software automation, process design, personnel hiring, and team training; utilities contracts, hosting operations, and customer management; energy portfolio optimization and strategic initiatives; and finance, accounting, and safety services for digital asset mining site owners, governments, and data center developers. In addition, the company provides colocation, cloud, and connectivity services; hosting services, which include the provision of mining equipment and space, as well as monitors, troubleshoots, repairs, and maintains customer mining equipment; and equipment sales and repair services. Hut 8 Corp. was founded in 2017 and is based in Miami, Florida.