Critical Comparison: X Financial (NYSE:XYF) and Winland Electronics (OTCMKTS:WELX)

X Financial (NYSE:XYF) and Winland Electronics (OTCMKTS:WELX) are both small-cap finance companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, profitability, institutional ownership, dividends, earnings, analyst recommendations and valuation.

Institutional and Insider Ownership

1.2% of X Financial shares are owned by institutional investors. 31.6% of X Financial shares are owned by company insiders. Comparatively, 8.1% of Winland Electronics shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares X Financial and Winland Electronics”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
X Financial	$1.09 billion	0.17	$209.43 million	$3.45	1.39
Winland Electronics	$5.81 million	2.14	-$520,000.00	$0.50	4.90

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

Analyst Recommendations

This is a summary of current ratings and recommmendations for X Financial and Winland Electronics, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
X Financial	0	1	0	0	2.00
Winland Electronics	0	0	0	0	0.00

Profitability

This table compares X Financial and Winland Electronics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
X Financial	15.06%	14.38%	7.93%
Winland Electronics	N/A	N/A	N/A

Risk & Volatility

X Financial has a beta of 0.56, meaning that its share price is 44% less volatile than the S&P 500. Comparatively, Winland Electronics has a beta of 1.28, meaning that its share price is 28% more volatile than the S&P 500.

Summary

X Financial beats Winland Electronics on 9 of the 12 factors compared between the two stocks.

About X Financial

X Financial provides personal finance services in the People’s Republic of China. The company offers services as an online marketplace connecting borrowers and investors or institutional funding partners. Its loan products include Xiaoying credit loan, which consists of Xiaoying card loan; and Xiaoying preferred loan to small business owners. The company also offers Xiaoying housing loan, a home equity loan product for property owners; investment products through Xiaoying wealth management platform, such as funds, money market, and insurance products; and loan facilitation services to other platforms. In addition, it engages in the technology development, service, and sale of products; and provision of guarantee and consulting services. The company was incorporated in 2014 and is headquartered in Shenzhen, the People’s Republic of China.

About Winland Electronics

Winland Holdings Corporation, through its subsidiaries, provides critical condition monitoring devices to the security industry. Its products are used to protect against loss of assets due to damage from water, excess humidity, extremes of temperature, and loss of power. The company offers EnviroAlert, which monitors temperature, humidity, and/or water presence in critical environments; TempAlert, a temperature monitoring device for residential and commercial environments through security systems; WaterBug, a water presence and leak detection system; and Power-Out Alert, a power outage detector. It also provides INSIGHT, an automated cloud-based platform that offers early alerting, reporting, and logging services designed to ensure regulatory compliance. The company offers its products through a network of distributors, dealers, security installers, and integrators for industries including health and medical, grocery and food services, and commercial and industrial, as well as agriculture and residential. Winland Holdings Corporation was incorporated in 1972 and is headquartered in Mankato, Minnesota.