Critical Review: Qudian (QD) versus Mitek Systems (MITK)
Qudian (NYSE: QD) and Mitek Systems (NASDAQ:MITK) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, risk, profitability, earnings, institutional ownership, valuation and dividends.
This is a breakdown of recent ratings and target prices for Qudian and Mitek Systems, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Qudian currently has a consensus price target of $21.00, suggesting a potential upside of 70.04%. Mitek Systems has a consensus price target of $10.75, suggesting a potential upside of 21.47%. Given Qudian’s higher probable upside, research analysts plainly believe Qudian is more favorable than Mitek Systems.
Insider and Institutional Ownership
43.5% of Mitek Systems shares are held by institutional investors. 8.5% of Mitek Systems shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Earnings & Valuation
This table compares Qudian and Mitek Systems’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Qudian||$212.83 million||19.15||$85.06 million||N/A||N/A|
|Mitek Systems||$45.39 million||6.78||$14.09 million||$0.38||23.29|
Qudian has higher revenue and earnings than Mitek Systems.
This table compares Qudian and Mitek Systems’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Qudian Inc. provides cash credit products, which provide funds in digital form, and merchandise credit products. The Company operates through an online platform and all the transaction are facilitated through mobile devices. Borrowers can apply for credit on their mobile phones and receive approval within a few seconds. Approved borrowers are then able to draw down on their cash credit with cash disbursed immediately into their Alipay accounts in digital form. It also offers merchandise credit products to finance borrowers’ direct purchase of merchandise offered on its marketplace on installment basis. Its marketplace connects consumers with merchandise suppliers. It offers 14 categories of merchandise from over 1,000 brands covering primarily consumer electronics, home appliances, watches and accessories, sports and outdoor merchandise and luggage.
About Mitek Systems
Mitek Systems, Inc. develops, markets and sells mobile capture and identity verification software solutions for enterprise customers. The Company’s technology allows users to remotely deposit checks, open accounts, get insurance quotes, pay bills, as well as verify their identity by taking pictures of various documents with their camera-equipped smartphones and tablets instead of using the device keyboard. Its technology uses algorithms to correct image distortion, extract relevant data, route images to their desired location and process transactions. Its technology processes images of documents in various ways. The Company’s products include Mobile Verify, Mobile Fill, Mobile Docs, Mobile Deposit and Commercial Mobile Deposit Capture. Its mobile technology solutions are provided in two parts: a software development kit (SDK) for mobile capture, and a software platform for image correction, detection, extraction and authentication.
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