CNFinance (CNF) & Its Competitors Head-To-Head Review

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

Insider and Institutional 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 is poised for long-term growth.

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 3.62
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.

Analyst Recommendations

This is a summary of recent ratings for CNFinance and its peers, as provided 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 price target 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, analysts plainly believe CNFinance is more favorable than its peers.

Risk and Volatility

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

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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