Comparing Rakuten (OTCMKTS:RKUNY) & Uxin (NASDAQ:UXIN)

Rakuten (OTCMKTS:RKUNY) and Uxin (NASDAQ:UXIN) are both computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, risk, valuation, dividends and analyst recommendations.

Earnings and Valuation

This table compares Rakuten and Uxin”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rakuten	$16.70 billion	0.59	-$1.19 billion	($0.37)	-12.14
Uxin	$463.27 million	0.91	-$39.69 million	($0.21)	-9.24

Uxin has lower revenue, but higher earnings than Rakuten. Rakuten is trading at a lower price-to-earnings ratio than Uxin, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Rakuten has a beta of 1.12, indicating that its share price is 12% more volatile than the S&P 500. Comparatively, Uxin has a beta of 0.85, indicating that its share price is 15% less volatile than the S&P 500.

Insider and Institutional Ownership

22.4% of Uxin shares are held by institutional investors. 62.9% of Uxin shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Rakuten and Uxin’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Rakuten	-4.83%	-10.02%	-0.44%
Uxin	-8.46%	N/A	-11.60%

Analyst Ratings

This is a breakdown of recent ratings and price targets for Rakuten and Uxin, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rakuten	0	1	0	1	3.00
Uxin	1	0	1	0	2.00

Uxin has a consensus target price of $4.50, indicating a potential upside of 131.96%. Given Uxin’s higher probable upside, analysts clearly believe Uxin is more favorable than Rakuten.

Summary

Uxin beats Rakuten on 9 of the 15 factors compared between the two stocks.

About Rakuten

Rakuten Group, Inc. provides services in e-commerce, fintech, digital content, and communications to various users in Japan and internationally. The company operates through three segments: Internet Services, FinTech, and Mobile. The Internet Services segment provides range of e-commerce sites, such as Rakuten Ichiba, an Internet shopping mall, online cash-back sites, travel booking sites, portal sites, and digital content sites. It also offers messaging services and sells advertising; and manages professional sport teams. The FinTech segment offers financial services over the internet related to banking and securities, credit cards, life insurance, general insurance, electronic payment business, crypto asset (virtual currency) spot transaction, etc. The Mobile segment provides communication services and technology, electricity supply, and digital content site services. The company was formerly known as Rakuten, Inc. and changed its name to Rakuten Group, Inc. in April 2021. Rakuten Group, Inc. was incorporated in 1997 and is headquartered in Setagaya, Japan.

About Uxin

Uxin Limited, an investment holding company, engages in the retail sale of vehicles in China. The company operates an e-commerce platform for buying and selling used cars. It also offers used-car acquisition, inspection, reconditioning, warehousing, pre-sales and after-sales, and various car-related value-added products and services, as well as warranty and repair, delivery, and title transfers and vehicle registration services. Uxin Limited was incorporated in 2011 and is headquartered in Beijing, China.