Financial Review: Binah Capital Group (NASDAQ:BCG) and X Financial (NYSE:XYF)

X Financial (NYSE:XYF) and Binah Capital Group (NASDAQ:BCG) are both small-cap finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, analyst recommendations, earnings, valuation, institutional ownership, dividends and profitability.

Institutional and Insider Ownership

1.2% of X Financial shares are owned by institutional investors. Comparatively, 5.0% of Binah Capital Group shares are owned by institutional investors. 31.6% of X Financial shares are owned by insiders. Comparatively, 83.0% of Binah Capital Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation and Earnings

This table compares X Financial and Binah Capital Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
X Financial	$678.16 million	0.50	$167.16 million	$3.65	1.90
Binah Capital Group	$160.39 million	0.27	$570,000.00	N/A	N/A

X Financial has higher revenue and earnings than Binah Capital Group.

Volatility & Risk

X Financial has a beta of 0.29, indicating that its stock price is 71% less volatile than the S&P 500. Comparatively, Binah Capital Group has a beta of 0.42, indicating that its stock price is 58% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for X Financial and Binah Capital Group, as reported by MarketBeat.

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
X Financial	25.38%	20.63%	10.74%
Binah Capital Group	N/A	N/A	-7.16%

Summary

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

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.

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.