Head to Head Review: OneConnect Financial Technology (NYSE:OCFT) vs. Qutoutiao (NYSE:QTT)

Qutoutiao (NASDAQ:QTT) and OneConnect Financial Technology (NYSE:OCFT) are both computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, profitability, analyst recommendations, institutional ownership, dividends, valuation and earnings.

Institutional & Insider Ownership

3.2% of Qutoutiao shares are held by institutional investors. Comparatively, 9.2% of OneConnect Financial Technology shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Qutoutiao and OneConnect Financial Technology’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Qutoutiao -43.29% -2,417.23% -85.81%
OneConnect Financial Technology N/A N/A N/A

Analyst Recommendations

This is a breakdown of recent recommendations for Qutoutiao and OneConnect Financial Technology, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Qutoutiao 0 0 1 0 3.00
OneConnect Financial Technology 0 0 0 0 N/A

Qutoutiao presently has a consensus target price of $3.70, suggesting a potential upside of 58.80%. Given Qutoutiao’s higher possible upside, equities analysts plainly believe Qutoutiao is more favorable than OneConnect Financial Technology.

Valuation & Earnings

This table compares Qutoutiao and OneConnect Financial Technology’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Qutoutiao $790.85 million 0.83 -$386.20 million ($1.52) -1.53
OneConnect Financial Technology $330.51 million 21.86 -$240.28 million ($0.75) -26.33

OneConnect Financial Technology has lower revenue, but higher earnings than Qutoutiao. OneConnect Financial Technology is trading at a lower price-to-earnings ratio than Qutoutiao, indicating that it is currently the more affordable of the two stocks.

Summary

OneConnect Financial Technology beats Qutoutiao on 7 of the 11 factors compared between the two stocks.

Qutoutiao Company Profile

Qutoutiao Inc. operates mobile platforms for the distribution, consumption, and sharing of light entertainment content in the People's Republic of China. The company's flagship product include Qutoutiao, a mobile application that aggregates articles and videos from content providers and presents real-time customized feeds to users. It also offers Midu Novels, a mobile literature application that offers users free literature supported by advertising, as well as Midu Lite mobile literature application. The company was formerly known as Qtech Ltd. and changed its name to Qutoutiao Inc. in July 2018. Qutoutiao Inc. was founded in 2016 and is headquartered in Shanghai, China.

OneConnect Financial Technology Company Profile

OneConnect Financial Technology Co., Ltd. provides cloud-platform-based Fintech solutions, and online information and operating support services for financial institutions in the People's Republic of China. It offers digital retail banking, small and medium enterprises (SME) financing and services, retail and SME banking risk-management, auto insurance operations and services, asset management, asset-liability management, artificial intelligence customer service, core systems, and insurance sales management solutions. The company also operates Regtech, an end-to-end regulatory solution to help regulatory authorities automate and digitalize their operations; Gamma O, an open API platform-as-a-service for reusable financial technology components and integrations; and Blockchain network-as-a-service. In addition, it provides technology infrastructure, such as data management and cloud services. The company serves customers in the financial services industry, including banking, insurance, and asset management. OneConnect Financial Technology Co., Ltd. was founded in 2015 and is headquartered in Shenzhen, the People's Republic of China. OneConnect Financial Technology Co., Ltd. has a strategic agreement with the Hainan Local Financial Supervision Administration to develop smart financial and smart supervision services in the island province of Hainan, as well as the financial sector in Hainan free trade port. OneConnect Financial Technology Co., Ltd. is a subsidiary of Sen Rong Limited.

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