Enova International (NYSE:ENVA – Get Free Report) and X Financial (NYSE:XYF – Get Free Report) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, risk, dividends, analyst recommendations, institutional ownership, profitability and earnings.
Profitability
This table compares Enova International and X Financial’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Enova International | 10.31% | 26.66% | 5.55% |
| X Financial | 9.94% | 9.14% | 5.20% |
Risk & Volatility
Enova International has a beta of 1.21, suggesting that its share price is 21% more volatile than the S&P 500. Comparatively, X Financial has a beta of 0.53, suggesting that its share price is 47% less volatile than the S&P 500.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Enova International | 0 | 0 | 8 | 1 | 3.11 |
| X Financial | 0 | 1 | 0 | 0 | 2.00 |
Enova International presently has a consensus price target of $247.83, indicating a potential upside of 10.34%. Given Enova International’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Enova International is more favorable than X Financial.
Valuation and Earnings
This table compares Enova International and X Financial”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Enova International | $3.15 billion | 1.77 | $308.39 million | $13.49 | 16.65 |
| X Financial | $1.09 billion | 0.20 | $209.43 million | $1.96 | 2.83 |
Enova International has higher revenue and earnings than X Financial. X Financial is trading at a lower price-to-earnings ratio than Enova International, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
89.4% of Enova International shares are owned by institutional investors. Comparatively, 1.1% of X Financial shares are owned by institutional investors. 8.4% of Enova International shares are owned by company insiders. Comparatively, 31.6% of X Financial shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Summary
Enova International beats X Financial on 14 of the 15 factors compared between the two stocks.
About Enova International
Enova International, Inc., a technology and analytics company, provides online financial services in the United States, Brazil, and internationally. The company provides installment loans; line of credit accounts; CSO programs, including arranging loans with independent third-party lenders and assisting in the preparation of loan applications and loan documents; and bank programs, such as marketing services and loan servicing for near-prime unsecured consumer installment loan. It offers money transfer services. It markets its financing products under the CashNetUSA, NetCredit, OnDeck, Headway Capital, Simplic, and Pangea names. The company was founded in 2003 and is headquartered in Chicago, Illinois.
About X Financial
X Financial provides personal finance services in the People’s Republic of China. The company offers services as an online marketplace connecting borrowers and investors or institutional funding partners. Its loan products include Xiaoying credit loan, which consists of Xiaoying card loan; and Xiaoying preferred loan to small business owners. The company also offers Xiaoying housing loan, a home equity loan product for property owners; investment products through Xiaoying wealth management platform, such as funds, money market, and insurance products; and loan facilitation services to other platforms. In addition, it engages in the technology development, service, and sale of products; and provision of guarantee and consulting services. The company was incorporated in 2014 and is headquartered in Shenzhen, the People’s Republic of China.
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