Hexindai (HX) vs. The Competition Critical Review

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

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hexindai 0 0 0 0 N/A
Hexindai Competitors 251 957 1144 61 2.42

As a group, “Nondepository credit institutions” companies have a potential upside of 36.80%. Given Hexindai’s peers higher probable upside, analysts plainly believe Hexindai has less favorable growth aspects than its peers.

Earnings & Valuation

This table compares Hexindai and its peers revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Hexindai $61.33 million $5.53 million 22.40
Hexindai Competitors $37.00 billion $864.41 million 10.08

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.

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 -73.28% -44.00% -1.29%

Insider & Institutional Ownership

4.1% of Hexindai shares are held by institutional investors. Comparatively, 51.0% 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 large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

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 2.3% and pay out 30.5% of their earnings in the form of a dividend.

Volatility & Risk

Hexindai has a beta of 1.18, indicating that its stock price is 18% more volatile than the S&P 500. Comparatively, Hexindai’s peers have a beta of 1.63, indicating that their average stock price is 63% more volatile than the S&P 500.

Summary

Hexindai peers beat Hexindai on 7 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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