Head-To-Head Review: Katapult (NASDAQ:KPLT) versus Jiayin Group (NASDAQ:JFIN)

Jiayin Group (NASDAQ:JFIN) and Katapult (NASDAQ:KPLT) are both small-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, valuation, dividends, analyst recommendations and risk.

Risk and Volatility

Jiayin Group has a beta of 0.96, meaning that its stock price is 4% less volatile than the S&P 500. Comparatively, Katapult has a beta of 1.51, meaning that its stock price is 51% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Jiayin Group and Katapult, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Jiayin Group	1	0	0	0	1.00
Katapult	1	0	0	0	1.00

Institutional and Insider Ownership

44.1% of Jiayin Group shares are owned by institutional investors. Comparatively, 26.8% of Katapult shares are owned by institutional investors. 51.2% of Jiayin Group shares are owned by company insiders. Comparatively, 8.0% of Katapult shares are owned by company 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 Jiayin Group and Katapult’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Jiayin Group	17.79%	21.67%	11.33%
Katapult	3.60%	-26.41%	10.86%

Valuation & Earnings

This table compares Jiayin Group and Katapult”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Jiayin Group	$889.76 million	0.13	$219.61 million	$2.52	0.90
Katapult	$291.76 million	0.13	$1.37 million	$1.37	5.39

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

Summary

Jiayin Group beats Katapult on 9 of the 11 factors compared between the two stocks.

About Jiayin Group

Jiayin Group Inc., together with its subsidiaries, provides online consumer finance services in the People's Republic of China. The company operates a fintech platform that facilitates connections between individual borrowers and financial institutions. It also offers referral services for investment products offered by the financial service providers; and technology development and services, as well as guarantee services. The company was founded in 2011 and is headquartered in Shanghai, the People's Republic of China. Jiayin Group Inc. operates as a subsidiary of New Dream Capital Holdings Limited.

About Katapult

Katapult Holdings, Inc., an e-commerce focused financial technology company, provides e-commerce point-of-sale lease-purchase options for nonprime consumers in the United States. The company's technology platform provides nonprime consumers with a lease purchase option to enable them to obtain durable goods from its network of e-commerce retailers. It also offers Katapult Pay, a one-time use virtual card technology that makes lease purchasing and transactions. The company was formerly known as Cognical Holdings, Inc. and changed its name to Katapult Holdings, Inc. in February 2020. The company is headquartered in Plano, Texas.