Critical Analysis: LexinFintech (LX) & Its Peers
LexinFintech (NASDAQ: LX) is one of 31 public companies in the “Nondepository credit institutions” industry, but how does it contrast to its rivals? We will compare LexinFintech to related businesses based on the strength of its institutional ownership, analyst recommendations, risk, profitability, earnings, valuation and dividends.
This table compares LexinFintech and its rivals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This table compares LexinFintech and its rivals gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Net Income||Price/Earnings Ratio|
|LexinFintech||$857.97 million||$36.94 million||52.73|
|LexinFintech Competitors||$6.37 billion||$697.72 million||18.82|
LexinFintech’s rivals have higher revenue and earnings than LexinFintech. LexinFintech is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.
This is a breakdown of current recommendations and price targets for LexinFintech and its rivals, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
LexinFintech presently has a consensus price target of $20.27, indicating a potential upside of 74.71%. As a group, “Nondepository credit institutions” companies have a potential upside of 13.26%. Given LexinFintech’s stronger consensus rating and higher probable upside, equities analysts plainly believe LexinFintech is more favorable than its rivals.
Institutional and Insider Ownership
6.9% of LexinFintech shares are owned by institutional investors. Comparatively, 57.1% of shares of all “Nondepository credit institutions” companies are owned by institutional investors. 15.5% of shares of all “Nondepository credit institutions” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
LexinFintech Company Profile
LexinFintech Holdings Ltd., through its subsidiaries, operates as an online consumer finance platform for young adults in the People's Republic of China. The company operates Fenqile, an online consumer finance platform that offers personal installment loans, installment purchase loans, and other loan products, as well as Le Card credit line. It also matches customer loans with diversified funding sources, including individual investors on its Juzi Licai online investment platform, institutional funding partners in its direct lending programs, and investors of its asset-backed securities. The company was formerly known as Staging Finance Holding Ltd. and changed its name to LexinFintech Holdings Ltd. in March 2017. LexinFintech Holdings Ltd. was founded in 2013 and is headquartered in Shenzhen, the People's Republic of China.
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