Head-To-Head Survey: Atlanticus (NASDAQ:ATLC) & Jiayin Group (NASDAQ:JFIN)

Jiayin Group (NASDAQ:JFIN) and Atlanticus (NASDAQ:ATLC) are both small-cap finance companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, earnings, analyst recommendations, risk, profitability, valuation and institutional ownership.

Institutional & Insider Ownership

44.1% of Jiayin Group shares are owned by institutional investors. Comparatively, 14.2% of Atlanticus shares are owned by institutional investors. 51.2% of Jiayin Group shares are owned by insiders. Comparatively, 51.0% of Atlanticus shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Jiayin Group and Atlanticus’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Jiayin Group	17.79%	21.67%	11.33%
Atlanticus	5.80%	25.17%	2.15%

Valuation and Earnings

This table compares Jiayin Group and Atlanticus”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Jiayin Group	$889.76 million	0.14	$219.61 million	$2.52	0.92
Atlanticus	$1.97 billion	0.75	$122.20 million	$7.69	12.72

Jiayin Group has higher earnings, but lower revenue than Atlanticus. Jiayin Group is trading at a lower price-to-earnings ratio than Atlanticus, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Jiayin Group and Atlanticus, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Jiayin Group	1	0	0	0	1.00
Atlanticus	0	2	5	1	2.88

Atlanticus has a consensus target price of $126.00, suggesting a potential upside of 28.86%. Given Atlanticus’ stronger consensus rating and higher possible upside, analysts clearly believe Atlanticus is more favorable than Jiayin Group.

Risk and Volatility

Jiayin Group has a beta of 0.96, suggesting that its stock price is 4% less volatile than the S&P 500. Comparatively, Atlanticus has a beta of 2.11, suggesting that its stock price is 111% more volatile than the S&P 500.

Summary

Atlanticus beats Jiayin Group on 10 of the 15 factors compared between the two stocks.

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.

About Atlanticus

Atlanticus Holdings Corporation, a financial technology company, provides credit and related financial services and products to customers the United States. It operates in two segments, Credit as a Service, and Auto Finance. The Credit as a Service segment originates a range of consumer loan products, such as private label and general purpose credit cards originated by lenders through various channels, including retail and healthcare, direct mail solicitation, digital marketing, and partnerships with third parties; and offers credit to their customers for the purchase of various goods and services, including consumer electronics, furniture, elective medical procedures, healthcare, and home-improvements by partnering with retailers, healthcare providers, and other service providers. This segment also offers loan servicing, such as risk management and customer service outsourcing for third parties; and engages in testing and investment activities in consumer finance technology platforms. The Auto Finance segment purchases and/or services loans secured by automobiles from or for a pre-qualified network of independent automotive dealers and automotive finance companies in the buy-here, pay-here, and used car business. This segment also provides floor plan financing and installment lending products. It also invests in and services portfolios of credit card receivables. The company was founded in 1996 and is headquartered in Atlanta, Georgia.