Head to Head Review: CNFinance (CNF) vs. Its Peers

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

Institutional and 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 insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares CNFinance and its rivals’ 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%

Valuation & Earnings

This table compares CNFinance and its rivals revenue, earnings per share (EPS) 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 rivals have higher revenue and earnings than CNFinance. CNFinance is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Risk & Volatility

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

Analyst Recommendations

This is a breakdown of current ratings and target prices for CNFinance and its rivals, 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 46.28%. As a group, “Nondepository credit institutions” companies have a potential upside of 29.05%. Given CNFinance’s stronger consensus rating and higher probable upside, research analysts plainly believe CNFinance is more favorable than its rivals.

Summary

CNFinance beats its rivals 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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