Financial Analysis: Jiayin Group (NASDAQ:JFIN) versus AEON Financial Service (OTCMKTS:AEOJF)

AEON Financial Service (OTCMKTS:AEOJF) and Jiayin Group (NASDAQ:JFIN) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, institutional ownership, earnings, dividends, profitability and risk.

Insider & Institutional Ownership

23.5% of AEON Financial Service shares are owned by institutional investors. Comparatively, 44.1% of Jiayin Group shares are owned by institutional investors. 51.2% of Jiayin Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current recommendations and price targets for AEON Financial Service and Jiayin Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AEON Financial Service	0	0	0	0	0.00
Jiayin Group	1	0	0	0	1.00

Dividends

AEON Financial Service pays an annual dividend of $47.78 per share and has a dividend yield of 557.6%. Jiayin Group pays an annual dividend of $0.79 per share and has a dividend yield of 34.2%. AEON Financial Service pays out 33.2% of its earnings in the form of a dividend. Jiayin Group pays out 31.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Valuation and Earnings

This table compares AEON Financial Service and Jiayin Group”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AEON Financial Service	N/A	N/A	N/A	$143.79	0.06
Jiayin Group	$5.20 billion	0.02	$219.61 million	$2.52	0.92

Jiayin Group has higher revenue and earnings than AEON Financial Service. AEON Financial Service is trading at a lower price-to-earnings ratio than Jiayin Group, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares AEON Financial Service and Jiayin Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AEON Financial Service	N/A	N/A	N/A
Jiayin Group	17.79%	21.67%	11.33%

Summary

Jiayin Group beats AEON Financial Service on 9 of the 11 factors compared between the two stocks.

About AEON Financial Service

AEON Financial Service Co., Ltd., through its subsidiaries, provides various financial services in Japan. The company operates Retail, Solutions, China Area, Mekong Area, and Malay Area segments. It is involved in banking, short-term insurance, bank agency, ATM, housing and other loans, property leases, installment sales, life and non-life insurance agency, life insurance sales, loan purchases, credit card purchase contracts, collection and payment agency, credit card, and electronic money businesses, as well as bank and business management activities. In addition, the company engages in the management, collection, and purchase of specified monetary claims, and backup servicing businesses. AEON Financial Service Co., Ltd. was incorporated in 1981 and is based in Tokyo, Japan.

About Jiayin Group

Jiayin Group Inc., together with its subsidiaries, provides online consumer finance services in the People's Republic of China. The company operates a fintech platform that facilitates connections between individual borrowers and financial institutions. It also offers referral services for investment products offered by the financial service providers; and technology development and services, as well as guarantee services. The company was founded in 2011 and is headquartered in Shanghai, the People's Republic of China. Jiayin Group Inc. operates as a subsidiary of New Dream Capital Holdings Limited.