Head-To-Head Contrast: Enova International (NYSE:ENVA) vs. X Financial (NYSE:XYF)

Enova International (NYSE:ENVA) and X Financial (NYSE:XYF) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, profitability, analyst recommendations, valuation, earnings, risk and dividends.

Risk and Volatility

Enova International has a beta of 1.22, suggesting that its stock price is 22% more volatile than the S&P 500. Comparatively, X Financial has a beta of 0.46, suggesting that its stock price is 54% less volatile than the S&P 500.

Earnings & Valuation

This table compares Enova International and X Financial”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Enova International	$3.15 billion	1.79	$308.39 million	$13.49	16.75
X Financial	$1.09 billion	0.21	$209.43 million	$1.96	2.96

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

Analyst Recommendations

This is a summary of current ratings and price targets for Enova International and X Financial, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Enova International	0	0	8	1	3.11
X Financial	0	1	0	0	2.00

Enova International currently has a consensus price target of $247.83, indicating a potential upside of 9.68%. Given Enova International’s stronger consensus rating and higher possible upside, analysts clearly believe Enova International is more favorable than X Financial.

Institutional and Insider Ownership

89.4% of Enova International shares are owned by institutional investors. Comparatively, 1.1% of X Financial shares are owned by institutional investors. 8.4% of Enova International shares are owned by insiders. Comparatively, 31.6% of X Financial shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Enova International and X Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Enova International	10.31%	26.66%	5.55%
X Financial	9.94%	9.14%	5.20%

Summary

Enova International beats X Financial on 14 of the 15 factors compared between the two stocks.

About Enova International

Enova International, Inc., a technology and analytics company, provides online financial services in the United States, Brazil, and internationally. The company provides installment loans; line of credit accounts; CSO programs, including arranging loans with independent third-party lenders and assisting in the preparation of loan applications and loan documents; and bank programs, such as marketing services and loan servicing for near-prime unsecured consumer installment loan. It offers money transfer services. It markets its financing products under the CashNetUSA, NetCredit, OnDeck, Headway Capital, Simplic, and Pangea names. The company was founded in 2003 and is headquartered in Chicago, Illinois.

About X Financial

X Financial provides personal finance services in the People’s Republic of China. The company offers services as an online marketplace connecting borrowers and investors or institutional funding partners. Its loan products include Xiaoying credit loan, which consists of Xiaoying card loan; and Xiaoying preferred loan to small business owners. The company also offers Xiaoying housing loan, a home equity loan product for property owners; investment products through Xiaoying wealth management platform, such as funds, money market, and insurance products; and loan facilitation services to other platforms. In addition, it engages in the technology development, service, and sale of products; and provision of guarantee and consulting services. The company was incorporated in 2014 and is headquartered in Shenzhen, the People’s Republic of China.