Contrasting Jiayin Group (NASDAQ:JFIN) and Jernigan Capital (NASDAQ:JCAP)

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

Dividends

Jernigan Capital pays an annual dividend of $0.96 per share and has a dividend yield of 4.8%. Jiayin Group pays an annual dividend of $0.79 per share and has a dividend yield of 59.8%. Jernigan Capital pays out 39.2% of its earnings in the form of a dividend. Jiayin Group pays out 123.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Volatility and Risk

Jernigan Capital has a beta of -0.02, meaning that its stock price is 102% less volatile than the S&P 500. Comparatively, Jiayin Group has a beta of 0.9, meaning that its stock price is 10% less volatile than the S&P 500.

Institutional & Insider Ownership

44.1% of Jiayin Group shares are held by institutional investors. 8.3% of Jernigan Capital 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 hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Jernigan Capital and Jiayin Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Jernigan Capital	1	0	5	1	2.86
Jiayin Group	1	0	0	0	1.00

Jernigan Capital presently has a consensus target price of $27.50, indicating a potential upside of 37.84%. Given Jernigan Capital’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Jernigan Capital is more favorable than Jiayin Group.

Profitability

This table compares Jernigan Capital and Jiayin Group’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%
Jiayin Group	5.39%	5.02%	2.57%

Valuation and Earnings

This table compares Jernigan Capital and Jiayin Group”s gross 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	1.87	$187.96 million	$2.45	8.14
Jiayin Group	$4.05 billion	0.02	$219.61 million	$0.64	2.06

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

Summary

Jernigan Capital beats Jiayin Group 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 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.