China Finance Online Co. Limited (NASDAQ: JRJC) and Elevate Credit (NYSE:ELVT) are both small-cap computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their risk, institutional ownership, analyst recommendations, earnings, profitability, valuation and dividends.
Earnings & Valuation
This table compares China Finance Online Co. Limited and Elevate Credit’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|China Finance Online Co. Limited||N/A||N/A||N/A||($0.62)||-2.71|
|Elevate Credit||$629.78 million||0.44||$59.10 million||N/A||N/A|
Elevate Credit has higher revenue and earnings than China Finance Online Co. Limited.
This table compares China Finance Online Co. Limited and Elevate Credit’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|China Finance Online Co. Limited||-20.77%||-31.23%||-17.17%|
This is a breakdown of current ratings and target prices for China Finance Online Co. Limited and Elevate Credit, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|China Finance Online Co. Limited||0||0||0||0||N/A|
Elevate Credit has a consensus target price of $11.00, indicating a potential upside of 53.42%. Given Elevate Credit’s higher probable upside, analysts clearly believe Elevate Credit is more favorable than China Finance Online Co. Limited.
Institutional and Insider Ownership
6.2% of China Finance Online Co. Limited shares are owned by institutional investors. Comparatively, 0.3% of Elevate Credit shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Elevate Credit beats China Finance Online Co. Limited on 6 of the 7 factors compared between the two stocks.
About China Finance Online Co. Limited
China Finance Online Co. Limited is a Web-based financial services company in China. The Company provides Chinese retail investors with online access to securities and commodities trading services, wealth management products, securities investment advisory services, as well as financial database and analytics services to institutional customers. The Company operates through three segments: commodities brokerage services, online financial information and advisory service, and other related services in the People’s Republic of China (PRC), and Hong Kong brokerage services. The Company offers financial software, information services and securities investment advisory services to retail investors in China. Through its subsidiary, Shenzhen Genius Information Technology Co., Ltd., the Company provides financial database and analytics to institutional customers, including domestic financial, research, academic and regulatory institutions.
About Elevate Credit
Elevate Credit, Inc. provides online credit solutions to non-prime consumers, typically defined as those with credit scores of less than 700. The Company uses advanced technology risk analytics to provide financial options to its customers, who are not well-served by either banks or legacy non-prime lenders. It offers online installment loans and lines of credit in the United States, and the United Kingdom. Its products, Rise, Elastic and Sunny, provide customers with access to priced credit and services while helping them with credit building and financial wellness features. Its products include credit building and financial wellness programs, such as credit reporting, free credit monitoring (in the United States) and online financial literacy videos and tools. Rise is an installment loan product. As of March 31, 2016, Rise was available in 15 states in the United States. Sunny is the Company’s United Kingdom installment loan product.
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