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

Insider and Institutional Ownership

0.8% of Weidai shares are held by institutional investors. Comparatively, 98.8% of Blucora shares are held by institutional investors. 3.4% of Blucora shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Weidai N/A N/A N/A
Blucora 11.57% 16.14% 10.06%

Earnings and Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Weidai $569.19 million 1.21 $87.50 million $1.59 6.19
Blucora $560.46 million 2.73 $50.63 million $1.52 20.80

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.

Analyst Recommendations

This is a breakdown of current recommendations for Weidai and Blucora, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Weidai 0 0 2 0 3.00
Blucora 0 1 3 0 2.75

Weidai presently has a consensus price target of $13.00, suggesting a potential upside of 31.98%. Blucora has a consensus price target of $44.33, suggesting a potential upside of 40.21%. Given Blucora’s higher probable upside, analysts clearly believe Blucora is more favorable than Weidai.

Summary

Blucora beats Weidai on 9 of the 13 factors compared between the two stocks.

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.

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.

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