CNFinance (CNF) and Its Peers Critical Comparison

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

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 -2.01% -10.53% 1.60%

Earnings and Valuation

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

Gross Revenue Net Income Price/Earnings Ratio
CNFinance $444.17 million $77.36 million 3.52
CNFinance Competitors $5.87 billion $888.55 million 9.00

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.

Analyst Ratings

This is a summary of current ratings and recommmendations 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 414 1213 1242 70 2.33

CNFinance currently has a consensus price target of $5.50, suggesting a potential upside of 50.07%. As a group, “Nondepository credit institutions” companies have a potential upside of 27.09%. Given CNFinance’s stronger consensus rating and higher possible upside, equities analysts clearly believe CNFinance is more favorable than its rivals.

Volatility & Risk

CNFinance has a beta of 0.87, indicating that its share price is 13% less volatile than the S&P 500. Comparatively, CNFinance’s rivals have a beta of -0.79, indicating that their average share price is 179% less volatile than the S&P 500.

Insider and Institutional Ownership

0.8% of CNFinance shares are owned by institutional investors. Comparatively, 50.9% of shares of all “Nondepository credit institutions” companies are owned by institutional investors. 14.3% of shares of all “Nondepository credit institutions” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

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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