Reviewing X Financial (NYSE:XYF) and Beneficient (NASDAQ:BENF)

Beneficient (NASDAQ:BENF) and X Financial (NYSE:XYF) are both small-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, analyst recommendations, risk, valuation, institutional ownership, profitability and dividends.

Valuation and Earnings

This table compares Beneficient and X Financial”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Beneficient	N/A	N/A	N/A	N/A	N/A
X Financial	$804.43 million	0.30	$210.97 million	$5.66	1.02

X Financial has higher revenue and earnings than Beneficient.

Insider & Institutional Ownership

90.6% of Beneficient shares are owned by institutional investors. Comparatively, 1.2% of X Financial shares are owned by institutional investors. 7.4% of Beneficient 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 hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings for Beneficient and X Financial, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Beneficient	1	0	0	0	1.00
X Financial	0	1	0	0	2.00

Profitability

This table compares Beneficient and X Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Beneficient	N/A	N/A	N/A
X Financial	22.75%	24.56%	14.10%

Risk and Volatility

Beneficient has a beta of -0.17, meaning that its stock price is 117% less volatile than the S&P 500. Comparatively, X Financial has a beta of 0.46, meaning that its stock price is 54% less volatile than the S&P 500.

Summary

X Financial beats Beneficient on 7 of the 8 factors compared between the two stocks.

About Beneficient

Beneficient, a technology-enabled financial services company, provides liquidity solutions and related trustee, custody and trust administrative services to participants in the alternative asset industry in the United States. It operates through Ben Liquidity, Ben Custody, and Customer ExAlt Trusts segments. The company offers Ben AltAccess platform for secure, online, and end-to-end delivery of each of the Ben business unit products and services, including upload documents, and work through tasks, and complete their transactions with standardized transaction agreements. It also provides Ben Liquidity, which offers alternative asset liquidity and fiduciary financing products; Ben Custody that provides custody and trust administration services to trustees and document custodian services to customers; and Ben Markets, which provides broker-dealer and transfer agency services. In addition, the company provides Ben Insurance Services, which offers insurance products and services; and Ben Data that provides data collection, evaluation, and analytics products and services. It serves individual and institutional investors, wealth advisors, and general partners. Beneficient is based in Dallas, Texas.

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.