Mitek Systems (NASDAQ: MITK) and Qudian (NYSE:QD) are both technology companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, valuation, institutional ownership, risk, profitability, analyst recommendations and dividends.

Profitability

This table compares Mitek Systems and Qudian’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Mitek Systems 31.05% 11.49% 9.64%
Qudian N/A N/A N/A

Institutional & Insider Ownership

43.6% of Mitek Systems shares are owned by institutional investors. 8.5% of Mitek Systems shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Mitek Systems and Qudian’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Mitek Systems $45.39 million 6.67 $14.09 million $0.38 22.89
Qudian $212.83 million 20.05 $85.06 million N/A N/A

Qudian has higher revenue and earnings than Mitek Systems.

Analyst Recommendations

This is a summary of current ratings and price targets for Mitek Systems and Qudian, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Mitek Systems 0 0 4 0 3.00
Qudian 0 0 6 0 3.00

Mitek Systems presently has a consensus price target of $10.75, indicating a potential upside of 23.56%. Qudian has a consensus price target of $21.00, indicating a potential upside of 62.41%. Given Qudian’s higher possible upside, analysts clearly believe Qudian is more favorable than Mitek Systems.

About Mitek Systems

Mitek Systems, Inc. develops, markets and sells mobile capture and identity verification software solutions for enterprise customers. The Company’s technology allows users to remotely deposit checks, open accounts, get insurance quotes, pay bills, as well as verify their identity by taking pictures of various documents with their camera-equipped smartphones and tablets instead of using the device keyboard. Its technology uses algorithms to correct image distortion, extract relevant data, route images to their desired location and process transactions. Its technology processes images of documents in various ways. The Company’s products include Mobile Verify, Mobile Fill, Mobile Docs, Mobile Deposit and Commercial Mobile Deposit Capture. Its mobile technology solutions are provided in two parts: a software development kit (SDK) for mobile capture, and a software platform for image correction, detection, extraction and authentication.

About Qudian

Qudian Inc. provides cash credit products, which provide funds in digital form, and merchandise credit products. The Company operates through an online platform and all the transaction are facilitated through mobile devices. Borrowers can apply for credit on their mobile phones and receive approval within a few seconds. Approved borrowers are then able to draw down on their cash credit with cash disbursed immediately into their Alipay accounts in digital form. It also offers merchandise credit products to finance borrowers’ direct purchase of merchandise offered on its marketplace on installment basis. Its marketplace connects consumers with merchandise suppliers. It offers 14 categories of merchandise from over 1,000 brands covering primarily consumer electronics, home appliances, watches and accessories, sports and outdoor merchandise and luggage.

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