Yirendai (NYSE:YRD) & Jernigan Capital (NASDAQ:JCAP) Financial Review

Jernigan Capital (NASDAQ:JCAP) and Yirendai (NYSE:YRD) are both small-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, profitability, valuation, institutional ownership, earnings, dividends and risk.

Valuation and Earnings

This table compares Jernigan Capital and Yirendai”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Jernigan Capital	$613.29 million	2.38	$187.96 million	$2.45	9.67
Yirendai	$817.84 million	0.12	$7.80 million	($1.18)	-0.98

Jernigan Capital has higher earnings, but lower revenue than Yirendai. Yirendai is trading at a lower price-to-earnings ratio than Jernigan Capital, indicating that it is currently the more affordable of the two stocks.

Dividends

Jernigan Capital pays an annual dividend of $0.96 per share and has a dividend yield of 4.1%. Yirendai pays an annual dividend of $0.20 per share and has a dividend yield of 17.3%. Jernigan Capital pays out 39.2% of its earnings in the form of a dividend. Yirendai pays out -16.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Yirendai is clearly the better dividend stock, given its higher yield and lower payout ratio.

Institutional & Insider Ownership

2.0% of Yirendai shares are held by institutional investors. 8.3% of Jernigan Capital shares are held by company insiders. Comparatively, 42.2% of Yirendai shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Jernigan Capital and Yirendai’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Jernigan Capital	23.50%	35.87%	8.16%
Yirendai	-14.35%	-7.58%	-5.21%

Risk & Volatility

Jernigan Capital has a beta of -0.16, suggesting that its share price is 116% less volatile than the S&P 500. Comparatively, Yirendai has a beta of 1.13, suggesting that its share price is 13% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and price targets for Jernigan Capital and Yirendai, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Jernigan Capital	0	2	4	1	2.86
Yirendai	1	0	0	0	1.00

Jernigan Capital currently has a consensus price target of $27.50, indicating a potential upside of 16.13%. Given Jernigan Capital’s stronger consensus rating and higher possible upside, research analysts clearly believe Jernigan Capital is more favorable than Yirendai.

Summary

Jernigan Capital beats Yirendai on 11 of the 17 factors compared between the two stocks.

About Jernigan Capital

Jernigan Capital is a New York Stock Exchange-listed real estate investment trust (NYSE: JCAP) that provides debt and equity capital to private developers, owners and operators of self-storage facilities with a view to eventual outright ownership of facilities the Company finances. The Company's mission is to maximize shareholder value by accumulating a multi-billion dollar investment portfolio consisting of the newest, most attractive and best located self-storage facilities in the United States through a talented and experienced team demonstrating the highest levels of integrity, dedication, excellence and community.

About Yirendai

Yiren Digital Ltd. provides financial services through an AI-powered platform in China. Its platform provides a suite of financial and lifestyle services. The company offers financial services, which provides a portfolio of loan products to borrowers; insurance brokerage services; and consumption and lifestyle services, including non-financial products and services to meet various consumer needs. It supports clients at various growth stages, addressing financing needs arising from consumption and production activities, and augmenting the well-being and security of individuals, families, and businesses. The company was formerly known as Yirendai Ltd. and changed its name to Yiren Digital Ltd. in September 2019. Yiren Digital Ltd. was founded in 2012 and is based in Beijing, the People's Republic of China. Yiren Digital Ltd. operates as a subsidiary of CreditEase Holdings (Cayman) Limited.