Fincera (OTCMKTS:YUANF) and Lithia Motors (NYSE:LAD) are both small-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, valuation, analyst recommendations and dividends.
This is a breakdown of recent ratings for Fincera and Lithia Motors, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Lithia Motors has a consensus price target of $106.75, indicating a potential upside of 24.66%. Given Lithia Motors’ higher possible upside, analysts plainly believe Lithia Motors is more favorable than Fincera.
Lithia Motors pays an annual dividend of $1.16 per share and has a dividend yield of 1.4%. Fincera does not pay a dividend. Lithia Motors pays out 13.8% of its earnings in the form of a dividend. Lithia Motors has raised its dividend for 8 consecutive years.
Valuation and Earnings
This table compares Fincera and Lithia Motors’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Fincera||$156.69 million||4.99||-$1.28 million||N/A||N/A|
|Lithia Motors||$10.09 billion||0.20||$245.21 million||$8.39||10.21|
Lithia Motors has higher revenue and earnings than Fincera.
Risk and Volatility
Fincera has a beta of -0.02, indicating that its share price is 102% less volatile than the S&P 500. Comparatively, Lithia Motors has a beta of 1.27, indicating that its share price is 27% more volatile than the S&P 500.
This table compares Fincera and Lithia Motors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Lithia Motors beats Fincera on 7 of the 12 factors compared between the two stocks.
Fincera Company Profile
Fincera Inc. focuses on providing online lending and e-commerce services for small and medium-sized businesses (SMBs) and individuals in China. The company operates in two segments, Internet-Based Financial and E-Commerce Services, and Property Lease and Management. The company's financial services platforms include CeraPay, a revolving credit product that processes and settles transactions between its borrowers and merchants; and CeraVest, a peer-to-peer lending platform that provides short-term financing primarily to SMBs. Its e-commerce products comprise TruShip, an online e-commerce platform for trucking industry merchants; AutoChekk, an e-commerce platform for the passenger vehicle industry; and PingPing, an e-commerce platform for small businesses to establish an online presence. The company also owns and leases office space; and operates and manages Shijiazhuang Hilton hotel in the Kaiyuan Finance Center building. The company was formerly known as AutoChina International Limited and changed its name to Fincera Inc. in July 2015. Fincera Inc. was founded in 1994 and is headquartered in Shijiazhuang, the People's Republic of China. Fincera Inc. is a subsidiary of Honest Best International Ltd.
Lithia Motors Company Profile
Lithia Motors, Inc. operates automotive franchises, and retails new and used vehicles in the United States. The company operates in three segments: Domestic, Import, and Luxury. It sells new and used cars, replacement parts, vehicle service contracts, vehicle protection products, and credit insurance products; provides vehicle maintenance, warranty, paint, and repair services; and arranges related financing. As of February 23, 2018, the company offered 30 brands of new vehicles and various brands of used vehicles in 171 stores in the United States, as well as through online at approximately 200 Websites. Lithia Motors, Inc. was founded in 1946 and is headquartered in Medford, Oregon.
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