Winmark (NASDAQ:WINA – Get Free Report) and Uxin (NASDAQ:UXIN – Get Free Report) are both small-cap consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, profitability, valuation, analyst recommendations, risk, institutional ownership and dividends.
Institutional and Insider Ownership
73.3% of Winmark shares are owned by institutional investors. Comparatively, 22.4% of Uxin shares are owned by institutional investors. 10.4% of Winmark shares are owned by insiders. Comparatively, 62.9% of Uxin shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Profitability
This table compares Winmark and Uxin’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Winmark | 45.13% | -94.74% | 111.43% |
| Uxin | -10.10% | N/A | -16.37% |
Valuation & Earnings
This table compares Winmark and Uxin”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Winmark | $91.79 million | 10.41 | $41.65 million | $11.21 | 23.96 |
| Uxin | $463.27 million | 0.41 | -$39.69 million | ($0.28) | -3.16 |
Winmark has higher earnings, but lower revenue than Uxin. Uxin is trading at a lower price-to-earnings ratio than Winmark, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of recent ratings for Winmark and Uxin, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Winmark | 0 | 1 | 0 | 0 | 2.00 |
| Uxin | 1 | 0 | 1 | 0 | 2.00 |
Uxin has a consensus price target of $4.50, suggesting a potential upside of 408.47%. Given Uxin’s higher possible upside, analysts plainly believe Uxin is more favorable than Winmark.
Volatility and Risk
Winmark has a beta of 0.56, meaning that its stock price is 44% less volatile than the S&P 500. Comparatively, Uxin has a beta of 0.75, meaning that its stock price is 25% less volatile than the S&P 500.
Summary
Winmark beats Uxin on 7 of the 13 factors compared between the two stocks.
About Winmark
Winmark Corporation, a resale company operates as a franchisor for small business in the United States and Canada. The company franchises retail stores concepts that buy, sell and trade merchandise. It also operates middle-market equipment leasing business. In addition, the company buys and sells used clothing and accessories geared toward the teenage and young adult market under Plato’s Closet brand; and operates stores which buys and sells used and new children’s clothing, toys, furniture, equipment, and accessories primarily to parents of children ages infant to 12 years under the Once Upon A Child brand. Further, it buys, sells, trades in, and used and new sporting goods, equipment, and accessories for various athletic activities including team sports, such as baseball/softball, hockey, football, lacrosse, and soccer, as well as fitness, ski/snowboard, golf, and others under the Play It Again Sports brand; and buys and sells used women’s apparel, shoes, and accessories under the Style Encore brand. Additionally, the company buys, sells, trades in, and used and new musical instruments, speakers, amplifiers, music-related electronics, and related accessories under the Music Go Round brand. Winmark Corporation was incorporated in 1988 and is headquartered in Minneapolis, Minnesota.
About Uxin
Uxin Limited, an investment holding company, engages in the retail sale of vehicles in China. The company operates an e-commerce platform for buying and selling used cars. It also offers used-car acquisition, inspection, reconditioning, warehousing, pre-sales and after-sales, and various car-related value-added products and services, as well as warranty and repair, delivery, and title transfers and vehicle registration services. Uxin Limited was incorporated in 2011 and is headquartered in Beijing, China.
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