Head to Head Analysis: Hexindai (NASDAQ:HX) versus Its Peers

Hexindai (NASDAQ: HX) is one of 38 public companies in the “Nondepository credit institutions” industry, but how does it contrast to its peers? We will compare Hexindai to similar businesses based on the strength of its institutional ownership, profitability, analyst recommendations, valuation, dividends, earnings and risk.

Profitability

This table compares Hexindai and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hexindai 9.02% 4.10% 3.40%
Hexindai Competitors 6.84% 32.72% 2.96%

Volatility & Risk

Hexindai has a beta of 1, meaning that its share price has a similar volatility profile to the S&P 500.Comparatively, Hexindai’s peers have a beta of 1.46, meaning that their average share price is 46% more volatile than the S&P 500.

Institutional & Insider Ownership

4.1% of Hexindai shares are owned by institutional investors. Comparatively, 51.1% of shares of all “Nondepository credit institutions” companies are owned by institutional investors. 16.0% of shares of all “Nondepository credit institutions” companies are owned by 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 Hexindai and its peers revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Hexindai $61.33 million $5.53 million 22.30
Hexindai Competitors $5.16 billion $841.76 million 10.61

Hexindai’s peers have higher revenue and earnings than Hexindai. Hexindai is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Analyst Ratings

This is a summary of recent ratings and price targets for Hexindai and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hexindai 0 0 0 0 N/A
Hexindai Competitors 256 966 1155 63 2.42

As a group, “Nondepository credit institutions” companies have a potential upside of 35.69%. Given Hexindai’s peers higher possible upside, analysts plainly believe Hexindai has less favorable growth aspects than its peers.

Dividends

Hexindai pays an annual dividend of $0.25 per share and has a dividend yield of 11.2%. Hexindai pays out 250.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Nondepository credit institutions” companies pay a dividend yield of 2.2% and pay out 31.2% of their earnings in the form of a dividend.

Summary

Hexindai peers beat Hexindai on 8 of the 12 factors compared.

About Hexindai

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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