Blucora (NASDAQ:BCOR) and Weidai (NYSE:WEI) are both small-cap business services companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, profitability, dividends, earnings, analyst recommendations, valuation and risk.

Analyst Recommendations

This is a summary of recent recommendations for Blucora and Weidai, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Blucora 0 1 4 0 2.80
Weidai 0 0 2 0 3.00

Blucora presently has a consensus target price of $43.75, indicating a potential upside of 26.04%. Weidai has a consensus target price of $13.00, indicating a potential upside of 28.97%. Given Weidai’s stronger consensus rating and higher possible upside, analysts clearly believe Weidai is more favorable than Blucora.

Institutional and Insider Ownership

98.4% of Blucora shares are held by institutional investors. Comparatively, 0.8% of Weidai shares are held by institutional investors. 2.9% of Blucora shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Blucora and Weidai’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Blucora 8.98% 13.95% 8.57%
Weidai N/A N/A N/A

Earnings & Valuation

This table compares Blucora and Weidai’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Blucora $560.46 million 2.99 $50.63 million $1.52 22.84
Weidai $569.19 million 1.24 $87.50 million $1.59 6.34

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

Summary

Blucora beats Weidai on 8 of the 13 factors compared between the two stocks.

About Blucora

Blucora, Inc. provides technology-enabled financial solutions to consumers, small business owners, and tax professionals in the United States. The company operates through two segments, Wealth Management and Tax Preparation. The Wealth Management segment offers an integrated platform of brokerage, investment advisory, and insurance services to financial advisors. The Tax Preparation segment provides digital do-it-yourself tax preparation solutions for consumers and small business owners through TaxAct.com; and ancillary services, including refund payment transfer, audit defense, stored value cards, retirement investment accounts, tax preparation support services, data archive services, and e-filing services. This segment also offers professional tax preparer software. The company was formerly known as InfoSpace, Inc. and changed its name to Blucora, Inc. in June 2012. Blucora, Inc. was founded in 1996 and is headquartered in Irving, Texas.

About Weidai

Weidai Ltd., through its subsidiaries, provides auto-backed financing solutions in the People's Republic of China. Its auto-backed financing platform connects borrowers primarily mall and micro enterprise owners with online investors and institutional funding partners. The company was founded in 2011 and is headquartered in Hangzhou, the People's Republic of China.

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