Critical Analysis: Invitation Homes (NYSE:INVH) vs. XChange TEC.INC (NASDAQ:XHG)

XChange TEC.INC (NASDAQ:XHG) and Invitation Homes (NYSE:INVH) are both business services companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, profitability, earnings, institutional ownership, risk, analyst recommendations and valuation.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for XChange TEC.INC and Invitation Homes, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
XChange TEC.INC	0	0	0	0	0.00
Invitation Homes	0	8	12	0	2.60

Invitation Homes has a consensus price target of $38.80, suggesting a potential upside of 17.33%. Given Invitation Homes’ stronger consensus rating and higher probable upside, analysts clearly believe Invitation Homes is more favorable than XChange TEC.INC.

Institutional and Insider Ownership

96.8% of Invitation Homes shares are owned by institutional investors. 0.6% of XChange TEC.INC shares are owned by company insiders. Comparatively, 0.3% of Invitation Homes shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares XChange TEC.INC and Invitation Homes”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
XChange TEC.INC	$91.70 million	0.00	-$9.77 million	N/A	N/A
Invitation Homes	$2.43 billion	8.33	$519.47 million	$0.71	46.58

Invitation Homes has higher revenue and earnings than XChange TEC.INC.

Profitability

This table compares XChange TEC.INC and Invitation Homes’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
XChange TEC.INC	N/A	N/A	N/A
Invitation Homes	17.02%	4.36%	2.28%

Volatility and Risk

XChange TEC.INC has a beta of -0.89, suggesting that its share price is 189% less volatile than the S&P 500. Comparatively, Invitation Homes has a beta of 1.03, suggesting that its share price is 3% more volatile than the S&P 500.

Summary

Invitation Homes beats XChange TEC.INC on 11 of the 12 factors compared between the two stocks.

About XChange TEC.INC

XChange TEC.INC engages in the professional insurance agency business in the People’s Republic of China. The company provides a various insurance products underwritten by insurance companies, including state-owned property and casualty insurance companies, as well as various regional property and casualty insurance companies. It also offers automobile, life, health, group accident, and other property related insurances primarily to individual end consumers. In addition, the company operates a SaaS platform to offer comprehensive services to online customers. It sells insurance primarily through a network of external referral sources that include external registered sales representatives and strategic channel partners, as well as through the in-house sales force. The company was formerly known as FLJ Group Limited and changed its name to XChange TEC.INC in May 2024. XChange TEC.INC was founded in 2012 and is based in Shanghai, the People’s Republic of China.

About Invitation Homes

Invitation Homes, an S&P 500 company, is the nation's premier single-family home leasing and management company, meeting changing lifestyle demands by providing access to high-quality, updated homes with valued features such as close proximity to jobs and access to good schools. The company's mission, Together with you, we make a house a home, reflects its commitment to providing homes where individuals and families can thrive and high-touch service that continuously enhances residents' living experiences.