NowAuto Group (OTCMKTS:CAFI) and Yirendai (NYSE:YRD) are both small-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, earnings, dividends, analyst recommendations, valuation, risk and profitability.

Valuation & Earnings

This table compares NowAuto Group and Yirendai’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
NowAuto Group N/A N/A N/A N/A N/A
Yirendai $817.50 million 1.07 $140.59 million $4.48 3.21

Yirendai has higher revenue and earnings than NowAuto Group.

Profitability

This table compares NowAuto Group and Yirendai’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
NowAuto Group N/A N/A N/A
Yirendai 18.18% 38.20% 22.42%

Dividends

Yirendai pays an annual dividend of $0.26 per share and has a dividend yield of 1.8%. NowAuto Group does not pay a dividend. Yirendai pays out 5.8% of its earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of current recommendations for NowAuto Group and Yirendai, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NowAuto Group 0 0 0 0 N/A
Yirendai 0 4 0 0 2.00

Yirendai has a consensus price target of $35.00, suggesting a potential upside of 143.39%. Given Yirendai’s higher probable upside, analysts plainly believe Yirendai is more favorable than NowAuto Group.

Risk & Volatility

NowAuto Group has a beta of 2.2, indicating that its stock price is 120% more volatile than the S&P 500. Comparatively, Yirendai has a beta of 3.49, indicating that its stock price is 249% more volatile than the S&P 500.

Insider & Institutional Ownership

11.0% of Yirendai shares are held by institutional investors. 11.9% of NowAuto Group shares are held by company insiders. Comparatively, 42.2% of Yirendai shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Yirendai beats NowAuto Group on 9 of the 10 factors compared between the two stocks.

NowAuto Group Company Profile

Consumer Automotive Finance Inc. operates as a retailer in the used vehicle market of the United States. It focuses primarily on the buy here/pay here segment of the independent used vehicle sales and finance market. The company sells approximately 2000 and newer model-year used vehicles and provides related financing through sale type leases. As of December 31, 2010, it had two retail locations in Arizona. The company was formerly known as NowAuto Group, Inc. Consumer Automotive Finance Inc. is based in Las Vegas, Nevada.

Yirendai Company Profile

Yirendai Ltd. operates as an online consumer finance marketplace that connects borrowers and investors primarily in the People's Republic of China. It offers standard loan products; and fasttrack loan products through mobile applications. The company also provides investing tools. The company was founded in 2012 and is based in Beijing, the People's Republic of China. Yirendai Ltd. is a subsidiary of Creditease Holdings (Cayman) Limited.

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