Contrasting X Financial (NYSE:XYF) and Mentor Capital (OTCMKTS:MNTR)

X Financial (NYSE:XYF) and Mentor Capital (OTCMKTS:MNTR) are both small-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, earnings, profitability, analyst recommendations, risk and institutional ownership.

Insider and Institutional Ownership

1.2% of X Financial shares are held by institutional investors. 31.6% of X Financial shares are held by company insiders. Comparatively, 23.7% of Mentor Capital shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Risk & Volatility

X Financial has a beta of 0.46, meaning that its share price is 54% less volatile than the S&P 500. Comparatively, Mentor Capital has a beta of -0.82, meaning that its share price is 182% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and price targets for X Financial and Mentor Capital, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
X Financial	0	1	0	0	2.00
Mentor Capital	0	0	0	0	0.00

Profitability

This table compares X Financial and Mentor Capital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
X Financial	22.75%	24.56%	14.10%
Mentor Capital	N/A	-17.94%	-14.89%

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
X Financial	$804.43 million	0.32	$210.97 million	$5.66	1.08
Mentor Capital	N/A	N/A	-$840,000.00	($0.02)	-4.58

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

Summary

X Financial beats Mentor Capital on 11 of the 11 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 Mentor Capital

Mentor Capital, Inc. is a private equity firm specializing in acquisitions and emerging growth investments. The firm provides passive equity funding and liquidity to smaller companies and owners in the medical, marijuana and social use cannabis companies. It invests in shelf IPO’s and public and private companies and seeks to provide public market access to owners of small private companies. The firm specializes in pre-IPO investments in Cannabis companies. It seeks to invest in energy sector of oil and gas, coal, uranium. In case of shelf IPO’s, the firm prefers to invest in companies with sales greater than $40 million. It prefers to take significant position in its portfolio companies. The firm invests only in companies that have earnings. Mentor Capital, Inc. was founded in 1985 and is based in Plano, Texas.