ORIX (NYSE:IX) and China Lending (NASDAQ:CLDC) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, valuation, earnings, dividends and risk.

Dividends

ORIX pays an annual dividend of $1.78 per share and has a dividend yield of 2.2%. China Lending does not pay a dividend.

Risk and Volatility

ORIX has a beta of 1.18, suggesting that its share price is 18% more volatile than the S&P 500. Comparatively, China Lending has a beta of -1.24, suggesting that its share price is 224% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and target prices for ORIX and China Lending, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ORIX 0 0 1 0 3.00
China Lending 0 0 0 0 N/A

Earnings and Valuation

This table compares ORIX and China Lending’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ORIX $25.76 billion 0.79 $2.82 billion N/A N/A
China Lending $16.53 million 1.34 -$54.78 million N/A N/A

ORIX has higher revenue and earnings than China Lending.

Institutional and Insider Ownership

2.0% of ORIX shares are owned by institutional investors. Comparatively, 0.1% of China Lending shares are owned by institutional investors. 0.1% of ORIX shares are owned by insiders. Comparatively, 2.2% of China Lending shares are owned 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 ORIX and China Lending’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ORIX 11.60% 10.81% 2.66%
China Lending N/A N/A N/A

Summary

ORIX beats China Lending on 9 of the 11 factors compared between the two stocks.

About ORIX

ORIX Corporation provides diversified financial services primarily in Japan and the Americas. It operates through six segments: Corporate Financial Services, Maintenance Leasing, Real Estate, Investment and Operation, Retail, and Overseas Business. The Corporate Financial Services segment engages in lending, leasing, and fee businesses. The Maintenance Leasing segment is involved in leasing, automobile rental, and car sharing businesses; lease and rental of precision measuring, information technology related, medical equipment, and environmental analysis equipment, as well as tablet computers; and the sale of software packages and equipment calibration and asset management. The Real Estate segment develops and leases office buildings, commercial properties, logistics centers, and residences; and operates accommodations, aquariums, golf courses, training facilities, senior housings, baseball stadiums, and theaters. This segment also offers REIT asset management and real estate investment advisory services. The Investment and Operation segment is involved in the collection and disposal of waste generated from end-of-lease assets; environment and energy business, such as mega-solar and electric power retailing; and investment in wind power generation and hydropower projects. The Retail segment engages in life insurance, banking, and card loan businesses. The Overseas Business segment is involved in leasing, financing, management, investment, intermediary and sales activities in the field of aircraft and ship. The company was formerly known as Orient Leasing Co., Ltd. and changed its name to ORIX Corporation in 1989. ORIX Corporation was founded in 1964 and is headquartered in Tokyo, Japan.

About China Lending

China Lending Corporation, through its subsidiaries, provides direct lending services in the Xinjiang Uyghur Autonomous Region of the People's Republic of China. It offers loans to micro, small, and medium sized enterprises; and sole proprietors. The company also provides financial consulting services. It serves customers in commerce and service, energy and mining, real estate, agriculture and husbandry, supply chain financing, manufacturing, consumer credit, and other industries. China Lending Corporation was founded in 2009 and is based in Urumqi, the People's Republic of China.

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