Head-To-Head Review: X Financial (NYSE:XYF) versus Credit Saison (OTCMKTS:CSASF)

Credit Saison (OTCMKTS:CSASF) and X Financial (NYSE:XYF) are both finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, profitability, dividends, valuation, earnings, risk and analyst recommendations.

Earnings and Valuation

This table compares Credit Saison and X Financial”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Credit Saison	N/A	N/A	N/A	C$144.02	0.16
X Financial	$1.09 billion	0.20	$209.43 million	$3.45	1.61

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

Institutional & Insider Ownership

26.3% of Credit Saison shares are held by institutional investors. Comparatively, 1.1% of X Financial shares are held by institutional investors. 31.6% of X Financial shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current recommendations for Credit Saison and X Financial, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Credit Saison	0	0	0	0	0.00
X Financial	0	1	0	0	2.00

Dividends

Credit Saison pays an annual dividend of C$23.91 per share and has a dividend yield of 101.3%. X Financial pays an annual dividend of $0.54 per share and has a dividend yield of 9.7%. Credit Saison pays out 16.6% of its earnings in the form of a dividend. X Financial pays out 15.7% 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.

Profitability

This table compares Credit Saison and X Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Credit Saison	N/A	N/A	N/A
X Financial	15.06%	14.38%	7.93%

Summary

X Financial beats Credit Saison on 8 of the 11 factors compared between the two stocks.

About Credit Saison

Credit Saison Co., Ltd. provides leasing, finance, real estate, entertainment, and payment services in Japan and internationally. The company offers credit cards, prepaid and debit cards, smartphone-based services, and information processing services; internet advertisement agency; marketing consulting; temporary staffing; and contracting services. It also engages in the credit guarantee and finance related businesses; real estate business; real estate leasing activities; and digital marketing and asset management services, as well as develops and manages amusement. Further, it involved in the import and sell of lifestyle goods; cleaning, security, and property maintenance services; debt collection; personal loan; life/non-life insurance agency; online ticket system and payment services; digital lending; and sells information security and office disaster prevention related services, etc. The company was formerly known as Seibu Credit Co., Ltd. and changed its name to Credit Saison Co., Ltd. in October 1989. Credit Saison Co., Ltd. was incorporated in 1951 and is headquartered in Tokyo, Japan.

About X Financial

X Financial provides personal finance services in the People’s Republic of China. The company offers services as an online marketplace connecting borrowers and investors or institutional funding partners. Its loan products include Xiaoying credit loan, which consists of Xiaoying card loan; and Xiaoying preferred loan to small business owners. The company also offers Xiaoying housing loan, a home equity loan product for property owners; investment products through Xiaoying wealth management platform, such as funds, money market, and insurance products; and loan facilitation services to other platforms. In addition, it engages in the technology development, service, and sale of products; and provision of guarantee and consulting services. The company was incorporated in 2014 and is headquartered in Shenzhen, the People’s Republic of China.