Weidai (NYSE:WEI) and LexinFintech (NASDAQ:LX) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, risk, earnings, profitability, institutional ownership, valuation and dividends.

Earnings and Valuation

This table compares Weidai and LexinFintech’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Weidai $569.19 million 1.22 $87.50 million $1.59 6.24
LexinFintech $1.10 billion 1.97 $287.59 million $1.60 8.29

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

Analyst Ratings

This is a breakdown of recent ratings for Weidai and LexinFintech, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Weidai 0 0 2 0 3.00
LexinFintech 0 0 2 0 3.00

Weidai presently has a consensus price target of $13.00, suggesting a potential upside of 31.05%. LexinFintech has a consensus price target of $18.00, suggesting a potential upside of 35.75%. Given LexinFintech’s higher possible upside, analysts clearly believe LexinFintech is more favorable than Weidai.

Insider & Institutional Ownership

0.8% of Weidai shares are held by institutional investors. Comparatively, 8.8% of LexinFintech shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Weidai N/A N/A N/A
LexinFintech 22.39% 58.62% 11.41%

Summary

LexinFintech beats Weidai on 10 of the 10 factors compared between the two stocks.

About Weidai

Weidai Ltd., through its subsidiaries, provides auto-backed financing solutions in the People's Republic of China. Its auto-backed financing platform connects borrowers primarily mall and micro enterprise owners with online investors and institutional funding partners. The company was founded in 2011 and is headquartered in Hangzhou, the People's Republic of 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, 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.

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