On Deck Capital (ONDK) and Hexindai (HX) Critical Review

On Deck Capital (NYSE:ONDK) and Hexindai (NASDAQ:HX) are both small-cap finance companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, institutional ownership, valuation, profitability and risk.

Dividends

Hexindai pays an annual dividend of $0.25 per share and has a dividend yield of 8.2%. On Deck Capital does not pay a dividend.

Valuation & Earnings

This table compares On Deck Capital and Hexindai’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
On Deck Capital $350.95 million 1.57 -$11.53 million ($0.16) -46.00
Hexindai $107.26 million 1.44 $65.48 million N/A N/A

Hexindai has lower revenue, but higher earnings than On Deck Capital.

Analyst Ratings

This is a summary of recent recommendations and price targets for On Deck Capital and Hexindai, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
On Deck Capital 1 3 3 0 2.29
Hexindai 0 0 0 0 N/A

On Deck Capital presently has a consensus price target of $9.58, indicating a potential upside of 30.21%. Hexindai has a consensus price target of $18.00, indicating a potential upside of 488.24%. Given Hexindai’s higher possible upside, analysts plainly believe Hexindai is more favorable than On Deck Capital.

Profitability

This table compares On Deck Capital and Hexindai’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
On Deck Capital 4.97% 9.36% 2.43%
Hexindai 59.99% 60.43% 51.89%

Institutional & Insider Ownership

76.9% of On Deck Capital shares are held by institutional investors. Comparatively, 1.2% of Hexindai shares are held by institutional investors. 21.4% of On Deck Capital shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Hexindai beats On Deck Capital on 7 of the 12 factors compared between the two stocks.

On Deck Capital Company Profile

On Deck Capital, Inc. operates an online platform for small business lending in the United States, Canada, and Australia. It offers term loans and lines of credit. The company was incorporated in 2006 and is headquartered in New York, New York.

Hexindai Company Profile

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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