Senmiao Technology (NASDAQ:AIHS) & Magic Empire Global (NASDAQ:MEGL) Critical Review

Senmiao Technology (NASDAQ:AIHS) and Magic Empire Global (NASDAQ:MEGL) are both small-cap computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, risk, earnings, profitability, valuation, dividends and institutional ownership.

Risk & Volatility

Senmiao Technology has a beta of 0.81, indicating that its stock price is 19% less volatile than the S&P 500. Comparatively, Magic Empire Global has a beta of 3.26, indicating that its stock price is 226% more volatile than the S&P 500.

Institutional and Insider Ownership

0.4% of Senmiao Technology shares are held by institutional investors. Comparatively, 0.5% of Magic Empire Global shares are held by institutional investors. 1.5% of Senmiao Technology shares are held by company insiders. Comparatively, 63.0% of Magic Empire Global shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and target prices for Senmiao Technology and Magic Empire Global, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Senmiao Technology	0	0	0	0	N/A
Magic Empire Global	0	0	0	0	N/A

Profitability

This table compares Senmiao Technology and Magic Empire Global’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Senmiao Technology	-50.42%	-53.30%	-28.00%
Magic Empire Global	N/A	N/A	N/A

Valuation & Earnings

This table compares Senmiao Technology and Magic Empire Global’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Senmiao Technology	$8.08 million	1.06	-$3.11 million	($0.45)	-1.99
Magic Empire Global	$1.43 million	9.07	-$490,000.00	N/A	N/A

Magic Empire Global has lower revenue, but higher earnings than Senmiao Technology.

Summary

Magic Empire Global beats Senmiao Technology on 8 of the 9 factors compared between the two stocks.

About Senmiao Technology

Senmiao Technology Limited engages in the automobile transaction and related services business in the People's Republic of China. It operates through two segments, Automobile Transaction and Related Services, and Online Ride-Hailing Platform Services. The company offers car rental services to individual customers; and auto finance solutions through financing leases. It also engages in automobile sales comprising sale of new purchased or used cars; and the provision of supporting services, as well as auto management and guarantee services provided to online ride-hailing drivers. In addition, the company provides new energy vehicles leasing, automobile purchase, and management services, such as ride-hailing driver training, assisting with a series of administrative procedures, and other consulting services, as well as credit assessment, preparation of financing application materials, assistance with closing of financing transactions, license and plate registration, payment of taxes and fees, purchase of insurance, installation of GPS devices, ride-hailing driver qualification, and other administrative procedures. Further, it operates Xixingtianxia, an online ride-hailing platform that enables qualified ride-hailing drivers to provide transportation services mainly in Chengdu, Changsha, Guangzhou, and other 23 cities in China. The company was founded in 2014 and is based in Chengdu, the People's Republic of China.

About Magic Empire Global

Magic Empire Global Limited engages in the provision of corporate finance advisory services and underwriting services in Hong Kong. The company provides initial public offering sponsorship, financial and independent financial advisory, financial advisory, post-listing compliance advisory, and underwriting services to corporations. The company was incorporated in 2016 and is headquartered in Central, Hong Kong.