Analyzing Winland Electronics (OTCMKTS:WELX) and X Financial (NYSE:XYF)

Winland Electronics (OTCMKTS:WELX) and X Financial (NYSE:XYF) are both small-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, risk, analyst recommendations, profitability, dividends, valuation and earnings.

Earnings and Valuation

This table compares Winland Electronics and X Financial”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Winland Electronics	$5.81 million	1.97	-$520,000.00	$0.50	4.50
X Financial	$1.09 billion	0.18	$209.43 million	$3.45	1.46

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Winland Electronics	N/A	N/A	N/A
X Financial	15.06%	14.38%	7.93%

Risk & Volatility

Winland Electronics has a beta of 1.28, meaning that its stock price is 28% more volatile than the S&P 500. Comparatively, X Financial has a beta of 0.56, meaning that its stock price is 44% less volatile than the S&P 500.

Insider & Institutional Ownership

1.2% of X Financial shares are held by institutional investors. 8.1% of Winland Electronics shares are held by insiders. Comparatively, 31.6% of X Financial shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current recommendations for Winland Electronics and X Financial, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Winland Electronics	0	0	0	0	0.00
X Financial	0	1	0	0	2.00

Summary

X Financial beats Winland Electronics on 9 of the 12 factors compared between the two stocks.

About Winland Electronics

Winland Holdings Corporation, through its subsidiaries, provides critical condition monitoring devices to the security industry. Its products are used to protect against loss of assets due to damage from water, excess humidity, extremes of temperature, and loss of power. The company offers EnviroAlert, which monitors temperature, humidity, and/or water presence in critical environments; TempAlert, a temperature monitoring device for residential and commercial environments through security systems; WaterBug, a water presence and leak detection system; and Power-Out Alert, a power outage detector. It also provides INSIGHT, an automated cloud-based platform that offers early alerting, reporting, and logging services designed to ensure regulatory compliance. The company offers its products through a network of distributors, dealers, security installers, and integrators for industries including health and medical, grocery and food services, and commercial and industrial, as well as agriculture and residential. Winland Holdings Corporation was incorporated in 1972 and is headquartered in Mankato, Minnesota.

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.