Jiayin Group (NASDAQ:JFIN) vs. Joint Stock Company Kaspi.kz (NASDAQ:KSPI) Critical Review

Joint Stock Company Kaspi.kz (NASDAQ:KSPI) and Jiayin Group (NASDAQ:JFIN) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, profitability, risk, analyst recommendations, dividends, earnings and institutional ownership.

Profitability

This table compares Joint Stock Company Kaspi.kz and Jiayin Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Joint Stock Company Kaspi.kz	24.00%	40.69%	9.54%
Jiayin Group	5.39%	5.02%	2.57%

Volatility and Risk

Joint Stock Company Kaspi.kz has a beta of 1.02, meaning that its stock price is 2% more volatile than the S&P 500. Comparatively, Jiayin Group has a beta of 0.92, meaning that its stock price is 8% less volatile than the S&P 500.

Earnings & Valuation

This table compares Joint Stock Company Kaspi.kz 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
Joint Stock Company Kaspi.kz	$7.70 billion	2.48	$2.04 billion	$10.98	9.15
Jiayin Group	$4.05 billion	0.02	$219.61 million	$0.64	2.30

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

Institutional and Insider Ownership

32.2% of Joint Stock Company Kaspi.kz shares are held by institutional investors. Comparatively, 44.1% of Jiayin Group shares are held by institutional investors. 51.2% of Jiayin Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Dividends

Joint Stock Company Kaspi.kz pays an annual dividend of $8.58 per share and has a dividend yield of 8.5%. Jiayin Group pays an annual dividend of $0.79 per share and has a dividend yield of 53.7%. Joint Stock Company Kaspi.kz pays out 78.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. 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.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Joint Stock Company Kaspi.kz and Jiayin Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Joint Stock Company Kaspi.kz	0	3	2	0	2.40
Jiayin Group	1	0	0	0	1.00

Joint Stock Company Kaspi.kz presently has a consensus target price of $107.33, indicating a potential upside of 6.82%. Given Joint Stock Company Kaspi.kz’s stronger consensus rating and higher possible upside, research analysts clearly believe Joint Stock Company Kaspi.kz is more favorable than Jiayin Group.

Summary

Joint Stock Company Kaspi.kz beats Jiayin Group on 13 of the 16 factors compared between the two stocks.

About Joint Stock Company Kaspi.kz

Joint Stock Company Kaspi.kz, together with its subsidiaries, provides payments, marketplace, and fintech solutions for consumers and merchants in the Republic of Kazakhstan. It operates through three segments: Payments Platform, Marketplace Platform, and Fintech Platform. The Payments Platform segment facilities transactions between customers and merchants. This segment offers shopping transactions, regular household bills, and peer to peer payments for consumers; accepts payment online and in store, issue and settle invoices, pay suppliers and monitor merchant turnover. It also provides proprietary data facilities informed decision making across multiple areas of business. Its Marketplace Platform segment connects online, and offline merchants and consumers enabling merchants to enhance its sales through an omni channel strategy and enable consumers to buy products and services from various merchants. This segment also operates marketplace through m-commerce, a mobile solution for shopping in person which consumers can use e-commerce to shop anywhere, anytime with free delivery; Kaspi Travel allows consumers to book domestic and international flights and package holidays, domestic rail tickets. It also enhances merchants sales by connecting payments and fintech products, Kapsi advertising, and other delivery services. The Fintech Platform segment provides consumers with BNPL, finance, and savings products and merchants with merchant finance services through super apps and Kapsi.kz Super app. It also involved in the banking; distressed asset management; real estate business; payment processing; online travel; and storage and processing of information services. The company was incorporated in 2008 and is headquartered in Almaty, the Republic of Kazakhstan.

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.