NowAuto Group (CAFI) & LexinFintech (NASDAQ:LX) Financial Analysis

LexinFintech (NASDAQ:LX) and NowAuto Group (OTCMKTS:CAFI) are both small-cap finance companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, valuation, analyst recommendations, profitability, risk, earnings and institutional ownership.

Profitability

This table compares LexinFintech and NowAuto Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
LexinFintech 15.33% 47.96% 7.11%
NowAuto Group N/A N/A N/A

Analyst Recommendations

This is a breakdown of recent recommendations for LexinFintech and NowAuto Group, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
LexinFintech 0 0 3 0 3.00
NowAuto Group 0 0 0 0 N/A

LexinFintech currently has a consensus price target of $20.27, indicating a potential upside of 126.19%. Given LexinFintech’s higher possible upside, equities analysts plainly believe LexinFintech is more favorable than NowAuto Group.

Institutional and Insider Ownership

6.7% of LexinFintech shares are held by institutional investors. 11.9% of NowAuto 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.

Earnings and Valuation

This table compares LexinFintech and NowAuto Group’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
LexinFintech $857.97 million 1.71 $36.94 million $0.22 40.73
NowAuto Group N/A N/A N/A N/A N/A

LexinFintech has higher revenue and earnings than NowAuto Group.

Summary

LexinFintech beats NowAuto Group on 7 of the 8 factors compared between the two stocks.

About LexinFintech

LexinFintech Holdings Ltd., through its subsidiaries, operates as an online consumer finance platform for young adults in the People's Republic of China. The company operates Fenqile, an online consumer finance platform that offers personal installment loans, installment purchase loans, and other loan products, as well as Le Card credit line. It also matches customer loans with diversified funding sources, including individual investors on its Juzi Licai online investment platform, institutional funding partners in its direct lending programs, and investors of its asset-backed securities. The company was formerly known as Staging Finance Holding Ltd. and changed its name to LexinFintech Holdings Ltd. in March 2017. LexinFintech Holdings Ltd. was founded in 2013 and is headquartered in Shenzhen, the People's Republic of China.

About NowAuto Group

Consumer Automotive Finance Inc. operates as a retailer in the used vehicle market of the United States. It focuses primarily on the buy here/pay here segment of the independent used vehicle sales and finance market. The company sells approximately 2000 and newer model-year used vehicles and provides related financing through sale type leases. As of December 31, 2010, it had two retail locations in Arizona. The company was formerly known as NowAuto Group, Inc. Consumer Automotive Finance Inc. is based in Las Vegas, Nevada.

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