CNFinance (NYSE: CNF) is one of 40 public companies in the “Nondepository credit institutions” industry, but how does it compare to its peers? We will compare CNFinance to similar companies based on the strength of its institutional ownership, profitability, valuation, dividends, analyst recommendations, earnings and risk.

Insider and Institutional Ownership

0.8% of CNFinance shares are owned by institutional investors. Comparatively, 50.3% of shares of all “Nondepository credit institutions” companies are owned by institutional investors. 14.9% of shares of all “Nondepository credit institutions” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings for CNFinance and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CNFinance 0 0 1 0 3.00
CNFinance Competitors 409 1198 1238 70 2.33

CNFinance presently has a consensus target price of $5.50, indicating a potential upside of 46.28%. As a group, “Nondepository credit institutions” companies have a potential upside of 29.05%. Given CNFinance’s stronger consensus rating and higher possible upside, research analysts plainly believe CNFinance is more favorable than its peers.

Valuation and Earnings

This table compares CNFinance and its peers revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
CNFinance $444.17 million $77.36 million 3.62
CNFinance Competitors $5.87 billion $888.55 million 8.90

CNFinance’s peers have higher revenue and earnings than CNFinance. CNFinance is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares CNFinance and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CNFinance 12.28% 9.53% 2.46%
CNFinance Competitors -7.49% -10.47% 1.13%

Risk and Volatility

CNFinance has a beta of 0.86, suggesting that its share price is 14% less volatile than the S&P 500. Comparatively, CNFinance’s peers have a beta of -0.83, suggesting that their average share price is 183% less volatile than the S&P 500.

Summary

CNFinance beats its peers on 7 of the 13 factors compared.

About CNFinance

CNFinance Holdings Limited, through its subsidiaries, provides home equity loan services in the People's Republic of China. It offers micro credit loan services for micro and small-enterprise owners, and loan lending agency services for banks. The company also provides bridge loan products, which are unsecured short-term loans to pay off borrowers' existing loans secured by real property. It operates through a network of 73 branches and sub-branches. The company was founded in 1999 and is headquartered in Guangzhou, the People's Republic of China.

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