Analyzing Jiayin Group (NASDAQ:JFIN) & Atlanticus (NASDAQ:ATLC)

Atlanticus (NASDAQ:ATLC) and Jiayin Group (NASDAQ:JFIN) are both small-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, dividends, profitability, institutional ownership, risk, analyst recommendations and valuation.

Institutional & Insider Ownership

14.2% of Atlanticus shares are held by institutional investors. Comparatively, 44.1% of Jiayin Group shares are held by institutional investors. 51.0% of Atlanticus shares are held by company insiders. Comparatively, 51.2% of Jiayin Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Atlanticus and Jiayin Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Atlanticus	5.80%	25.17%	2.15%
Jiayin Group	17.79%	21.67%	11.33%

Analyst Recommendations

This is a summary of recent ratings and target prices for Atlanticus and Jiayin Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Atlanticus	0	2	5	1	2.88
Jiayin Group	1	0	0	0	1.00

Atlanticus presently has a consensus target price of $126.00, suggesting a potential upside of 28.86%. Given Atlanticus’ stronger consensus rating and higher probable upside, analysts plainly believe Atlanticus is more favorable than Jiayin Group.

Volatility & Risk

Atlanticus has a beta of 2.11, meaning that its share price is 111% more volatile than the S&P 500. Comparatively, Jiayin Group has a beta of 0.96, meaning that its share price is 4% less volatile than the S&P 500.

Earnings and Valuation

This table compares Atlanticus and Jiayin Group”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Atlanticus	$1.97 billion	0.75	$122.20 million	$7.69	12.72
Jiayin Group	$889.76 million	0.14	$219.61 million	$2.52	0.92

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

Summary

Atlanticus beats Jiayin Group on 10 of the 15 factors compared between the two stocks.

About Atlanticus

Atlanticus Holdings Corporation, a financial technology company, provides credit and related financial services and products to customers the United States. It operates in two segments, Credit as a Service, and Auto Finance. The Credit as a Service segment originates a range of consumer loan products, such as private label and general purpose credit cards originated by lenders through various channels, including retail and healthcare, direct mail solicitation, digital marketing, and partnerships with third parties; and offers credit to their customers for the purchase of various goods and services, including consumer electronics, furniture, elective medical procedures, healthcare, and home-improvements by partnering with retailers, healthcare providers, and other service providers. This segment also offers loan servicing, such as risk management and customer service outsourcing for third parties; and engages in testing and investment activities in consumer finance technology platforms. The Auto Finance segment purchases and/or services loans secured by automobiles from or for a pre-qualified network of independent automotive dealers and automotive finance companies in the buy-here, pay-here, and used car business. This segment also provides floor plan financing and installment lending products. It also invests in and services portfolios of credit card receivables. The company was founded in 1996 and is headquartered in Atlanta, Georgia.

About Jiayin Group

Jiayin Group Inc., together with its subsidiaries, provides online consumer finance services in the People's Republic of China. The company operates a fintech platform that facilitates connections between individual borrowers and financial institutions. It also offers referral services for investment products offered by the financial service providers; and technology development and services, as well as guarantee services. The company was founded in 2011 and is headquartered in Shanghai, the People's Republic of China. Jiayin Group Inc. operates as a subsidiary of New Dream Capital Holdings Limited.