Analyzing Qudian (NYSE:QD) and Binah Capital Group (NASDAQ:BCG)

Qudian (NYSE:QD) and Binah Capital Group (NASDAQ:BCG) 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.

Valuation and Earnings

This table compares Qudian and Binah Capital Group’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Qudian	$17.79 million	22.33	$5.51 million	($0.30)	-6.60
Binah Capital Group	$158.99 million	0.65	$570,000.00	N/A	N/A

Qudian has higher earnings, but lower revenue than Binah Capital Group.

Profitability

This table compares Qudian and Binah Capital Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Qudian	-278.52%	-3.78%	-3.56%
Binah Capital Group	N/A	-13.14%	-6.71%

Insider & Institutional Ownership

8.1% of Qudian shares are held by institutional investors. Comparatively, 5.0% of Binah Capital Group shares are held by institutional investors. 25.7% of Qudian shares are held by insiders. Comparatively, 83.0% of Binah Capital Group 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 Qudian and Binah Capital Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Qudian	0	0	0	0	N/A
Binah Capital Group	0	0	0	0	N/A

Risk & Volatility

Qudian has a beta of 0.63, meaning that its stock price is 37% less volatile than the S&P 500. Comparatively, Binah Capital Group has a beta of 0.56, meaning that its stock price is 44% less volatile than the S&P 500.

Summary

Qudian beats Binah Capital Group on 6 of the 9 factors compared between the two stocks.

About Qudian

Qudian Inc. operates as a consumer-oriented technology company in the People's Republic of China. The company engages in the operation of online platforms to provide small consumer credit products. It also provides technology development and services; research and development services; and delivery services. The company was founded in 2014 and is headquartered in Xiamen, the People's Republic of China.

About Binah Capital Group

Binah Capital Group, Inc., together with its subsidiaries, operates in the wealth management industry. The company provides access to stock, bond, exchange-traded fund, and options execution services; and research, compliance, supervision, and accounting and related services for financial advisors. It also offers mutual funds and insurance products, as well as alternative investments, such as non-traded real estate investment trusts, unit trusts, and fixed and variable annuities. The company was founded in 2016 and is headquartered in Albany, New York. Binah Capital Group, Inc. operates as a subsidiary of MHC Securities, LLC.