Critical Analysis: goeasy (OTCMKTS:EHMEF) & Qfin (NASDAQ:QFIN)

Qfin (NASDAQ:QFIN) and goeasy (OTCMKTS:EHMEF) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their valuation, risk, earnings, dividends, institutional ownership, profitability and analyst recommendations.

Analyst Ratings

This is a summary of current ratings and price targets for Qfin and goeasy, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Qfin	1	3	1	0	2.00
goeasy	1	3	2	0	2.17

Qfin presently has a consensus price target of $19.91, indicating a potential upside of 52.92%. Given Qfin’s higher probable upside, analysts clearly believe Qfin is more favorable than goeasy.

Valuation & Earnings

This table compares Qfin and goeasy”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Qfin	$14.99 billion	0.11	$856.52 million	$5.46	2.38
goeasy	N/A	N/A	N/A	$1.24	28.06

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

Institutional & Insider Ownership

74.8% of Qfin shares are owned by institutional investors. Comparatively, 23.7% of goeasy shares are owned by institutional investors. 17.1% of Qfin shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Dividends

Qfin pays an annual dividend of $1.54 per share and has a dividend yield of 11.8%. goeasy pays an annual dividend of $0.26 per share and has a dividend yield of 0.7%. Qfin pays out 28.2% of its earnings in the form of a dividend. goeasy pays out 20.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Profitability

This table compares Qfin and goeasy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Qfin	27.48%	20.85%	8.71%
goeasy	N/A	N/A	N/A

Summary

Qfin beats goeasy on 9 of the 13 factors compared between the two stocks.

About Qfin

Qifu Technology, Inc., through its subsidiaries, operates credit-tech platform under the 360 Jietiao brand in the People's Republic of China. It provides credit-driven services that matches borrowers with financial institutions to conduct customer acquisition, initial and credit screening, advanced risk assessment, credit assessment, fund matching, and other post-facilitation services; and platform services, including loan facilitation and post-facilitation services to financial institution partners under intelligence credit engine, referral services, and risk management software-as-a-service. The company also offers e-commerce loans, enterprise loans, and invoice loans to SME owners. It serves financial institutions, consumers, and small- and micro-enterprises. The company was formerly known as 360 DigiTech, Inc. and changed its name to Qifu Technology, Inc. in March 2023. The company was founded in 2016 and is headquartered in Shanghai, the People's Republic of China.

About goeasy

goeasy Ltd. provides non-prime leasing and lending services under the easyhome, easyfinancial, and LendCare brands to consumers in Canada. The company operates through two segments, Easyfinancial and Easyhome. It offers unsecured and secured installment loans; home equity secured instalment loans and automotive vehicle financing; and loans to finance the purchase of retail goods, powersports and recreational vehicles, home improvement projects, and healthcare related products and services. The companyleases household furniture, appliances, electronics, and unsecured lending products to retail consumers. The company was formerly known as easyhome Ltd. and changed its name to goeasy Ltd. in September 2015. goeasy Ltd. was incorporated in 1990 and is headquartered in Mississauga, Canada.