Comparing Jiayin Group (NASDAQ:JFIN) and Katapult (NASDAQ:KPLT)

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

Valuation & Earnings

This table compares Katapult and Jiayin Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Katapult	$291.76 million	0.13	$1.37 million	$1.37	5.75
Jiayin Group	$889.76 million	0.14	$219.61 million	$2.52	0.92

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

Analyst Recommendations

This is a summary of current ratings and recommmendations for Katapult and Jiayin Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Katapult	1	1	0	0	1.50
Jiayin Group	1	0	0	0	1.00

Katapult presently has a consensus target price of $10.00, suggesting a potential upside of 26.90%. Given Katapult’s stronger consensus rating and higher possible upside, equities analysts clearly believe Katapult is more favorable than Jiayin Group.

Volatility and Risk

Katapult has a beta of 1.51, indicating that its share price is 51% more volatile than the S&P 500. Comparatively, Jiayin Group has a beta of 0.96, indicating that its share price is 4% less volatile than the S&P 500.

Insider & Institutional Ownership

26.8% of Katapult shares are held by institutional investors. Comparatively, 44.1% of Jiayin Group shares are held by institutional investors. 8.0% of Katapult shares are held by insiders. Comparatively, 51.2% of Jiayin Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Katapult	3.60%	-26.41%	10.86%
Jiayin Group	17.79%	21.67%	11.33%

Summary

Jiayin Group beats Katapult on 9 of the 13 factors compared between the two stocks.

About Katapult

Katapult Holdings, Inc., an e-commerce focused financial technology company, provides e-commerce point-of-sale lease-purchase options for nonprime consumers in the United States. The company's technology platform provides nonprime consumers with a lease purchase option to enable them to obtain durable goods from its network of e-commerce retailers. It also offers Katapult Pay, a one-time use virtual card technology that makes lease purchasing and transactions. The company was formerly known as Cognical Holdings, Inc. and changed its name to Katapult Holdings, Inc. in February 2020. The company is headquartered in Plano, Texas.

About Jiayin Group

Jiayin Group Inc., together with its subsidiaries, provides online consumer finance services in the People's Republic of China. The company operates a fintech platform that facilitates connections between individual borrowers and financial institutions. It also offers referral services for investment products offered by the financial service providers; and technology development and services, as well as guarantee services. The company was founded in 2011 and is headquartered in Shanghai, the People's Republic of China. Jiayin Group Inc. operates as a subsidiary of New Dream Capital Holdings Limited.