China Finance Online Co. Limited (NASDAQ: JRJC) is one of 27 publicly-traded companies in the “Professional Information Services” industry, but how does it contrast to its competitors? We will compare China Finance Online Co. Limited to similar companies based on the strength of its risk, institutional ownership, earnings, valuation, profitability, dividends and analyst recommendations.

Institutional & Insider Ownership

5.6% of China Finance Online Co. Limited shares are held by institutional investors. Comparatively, 58.7% of shares of all “Professional Information Services” companies are held by institutional investors. 30.4% of China Finance Online Co. Limited shares are held by insiders. Comparatively, 12.2% of shares of all “Professional Information Services” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings and target prices for China Finance Online Co. Limited and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
China Finance Online Co. Limited 0 0 0 0 N/A
China Finance Online Co. Limited Competitors 139 620 715 13 2.40

As a group, “Professional Information Services” companies have a potential upside of 1.84%. Given China Finance Online Co. Limited’s competitors higher probable upside, analysts plainly believe China Finance Online Co. Limited has less favorable growth aspects than its competitors.

Valuation and Earnings

This table compares China Finance Online Co. Limited and its competitors top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
China Finance Online Co. Limited $54.59 million -$40.63 million -1.54
China Finance Online Co. Limited Competitors $3.19 billion $932.62 million 16.07

China Finance Online Co. Limited’s competitors have higher revenue and earnings than China Finance Online Co. Limited. China Finance Online Co. Limited is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Risk and Volatility

China Finance Online Co. Limited has a beta of 2.47, indicating that its stock price is 147% more volatile than the S&P 500. Comparatively, China Finance Online Co. Limited’s competitors have a beta of 0.99, indicating that their average stock price is 1% less volatile than the S&P 500.

Profitability

This table compares China Finance Online Co. Limited and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
China Finance Online Co. Limited -61.81% -43.68% -21.96%
China Finance Online Co. Limited Competitors 7.26% 27.29% 5.05%

Summary

China Finance Online Co. Limited competitors beat China Finance Online Co. Limited on 7 of the 9 factors compared.

About China Finance Online Co. Limited

China Finance Online Co. Limited is a Web-based financial services company in China. The Company provides Chinese retail investors with online access to securities and commodities trading services, wealth management products, securities investment advisory services, as well as financial database and analytics services to institutional customers. The Company operates through three segments: commodities brokerage services, online financial information and advisory service, and other related services in the People’s Republic of China (PRC), and Hong Kong brokerage services. The Company offers financial software, information services and securities investment advisory services to retail investors in China. Through its subsidiary, Shenzhen Genius Information Technology Co., Ltd., the Company provides financial database and analytics to institutional customers, including domestic financial, research, academic and regulatory institutions.

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