Critical Analysis: Hexindai (HX) and Its Competitors
Hexindai (NASDAQ: HX) is one of 38 publicly-traded companies in the “Nondepository credit institutions” industry, but how does it contrast to its competitors? We will compare Hexindai to similar companies based on the strength of its dividends, institutional ownership, analyst recommendations, profitability, earnings, valuation and risk.
This table compares Hexindai and its competitors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
4.1% of Hexindai shares are held by institutional investors. Comparatively, 51.3% of shares of all “Nondepository credit institutions” companies are held by institutional investors. 16.0% of shares of all “Nondepository credit institutions” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Volatility & Risk
Hexindai has a beta of 1.19, indicating that its stock price is 19% more volatile than the S&P 500. Comparatively, Hexindai’s competitors have a beta of 1.63, indicating that their average stock price is 63% more volatile than the S&P 500.
This is a summary of current ratings and recommmendations for Hexindai and its competitors, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
As a group, “Nondepository credit institutions” companies have a potential upside of 33.15%. Given Hexindai’s competitors higher probable upside, analysts plainly believe Hexindai has less favorable growth aspects than its competitors.
Hexindai pays an annual dividend of $0.25 per share and has a dividend yield of 10.2%. Hexindai pays out 18.2% of its earnings in the form of a dividend. As a group, “Nondepository credit institutions” companies pay a dividend yield of 2.2% and pay out 29.0% of their earnings in the form of a dividend. Hexindai is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.
Valuation and Earnings
This table compares Hexindai and its competitors top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Net Income||Price/Earnings Ratio|
|Hexindai||$107.26 million||$65.48 million||1.80|
|Hexindai Competitors||$37.01 billion||$866.23 million||9.52|
Hexindai’s competitors have higher revenue and earnings than Hexindai. Hexindai is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.
Hexindai competitors beat Hexindai on 7 of the 12 factors compared.
Hexindai Company Profile
Hexindai Inc. operates a consumer lending marketplace that facilitates loans in China. It primarily focuses on facilitating medium-sized credit loans. The company provides borrowers a range of products based on customer segmentation data and tailored to the specific needs of the emerging middle class; and investors various types of investment products. The company was founded in 2013 and is headquartered in Beijing, China.
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