Comparing Senmiao Technology (NASDAQ:AIHS) and LexinFintech (NASDAQ:LX)

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

Insider & Institutional Ownership

0.1% of Senmiao Technology shares are owned by institutional investors. Comparatively, 15.4% of LexinFintech shares are owned by institutional investors. 45.2% of Senmiao Technology shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Risk and Volatility

Senmiao Technology has a beta of -0.2, meaning that its share price is 120% less volatile than the S&P 500. Comparatively, LexinFintech has a beta of 2, meaning that its share price is 100% more volatile than the S&P 500.

Earnings & Valuation

This table compares Senmiao Technology and LexinFintech’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Senmiao Technology $2.92 million 17.76 -$4.55 million N/A N/A
LexinFintech $1.10 billion 1.72 $287.59 million $1.60 7.24

LexinFintech has higher revenue and earnings than Senmiao Technology.

Analyst Recommendations

This is a breakdown of current ratings for Senmiao Technology and LexinFintech, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Senmiao Technology 0 0 0 0 N/A
LexinFintech 0 0 4 0 3.00

LexinFintech has a consensus target price of $16.20, indicating a potential upside of 39.78%. Given LexinFintech’s higher possible upside, analysts plainly believe LexinFintech is more favorable than Senmiao Technology.

Profitability

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

Net Margins Return on Equity Return on Assets
Senmiao Technology -158.15% -41.71% -34.67%
LexinFintech 27.22% 59.67% 16.12%

Summary

LexinFintech beats Senmiao Technology on 9 of the 11 factors compared between the two stocks.

About Senmiao Technology

Senmiao Technology Limited, through its interest in Sichuan Senmiao Ronglian Technology Co., Ltd., operates an online lending platform connecting Chinese investors with individual and small- to-medium-sized enterprise borrowers in China. Its platform offers access to credit to borrowers and creditors, and investment returns for investors. The company was incorporated in 2017 and is based in Chengdu, China.

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.com, a retail and online consumer finance platform that offers installment purchase loans, personal installment loans, and other loan products, as well as provides online direct sales with installment payment terms. It also matches customer loans with diversified funding sources, including individual investors on its Juzi Licai online investment platform, third-party commercial banks, consumer finance companies, institutional funding partners in its direct lending programs, investors of its asset-backed securities, and other licensed financial institutions. 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.

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