Critical Comparison: CNFinance (CNF) and Its Peers

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

Earnings & Valuation

This table compares CNFinance and its peers gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
CNFinance $444.17 million $77.36 million 3.71
CNFinance Competitors $5.87 billion $888.55 million 8.84

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.

Institutional & Insider Ownership

0.8% of CNFinance shares are held by institutional investors. Comparatively, 50.3% of shares of all “Nondepository credit institutions” companies are held by institutional investors. 14.9% of shares of all “Nondepository credit institutions” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Risk & Volatility

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

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%

Analyst Ratings

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

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 42.49%. As a group, “Nondepository credit institutions” companies have a potential upside of 28.70%. Given CNFinance’s stronger consensus rating and higher possible upside, equities analysts plainly believe CNFinance is more favorable than its peers.

Summary

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

CNFinance Company Profile

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.

Receive News & Ratings for CNFinance Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for CNFinance and related companies with MarketBeat.com's FREE daily email newsletter.