Square Enix (OTCMKTS:SQNXF) & Uxin (NASDAQ:UXIN) Critical Analysis

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

Institutional and Insider Ownership

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

Analyst Ratings

This is a breakdown of recent ratings and target prices for Square Enix and Uxin, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Square Enix	1	0	0	0	1.00
Uxin	1	0	1	0	2.00

Uxin has a consensus price target of $4.50, suggesting a potential upside of 51.41%. Given Uxin’s stronger consensus rating and higher probable upside, analysts plainly believe Uxin is more favorable than Square Enix.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Square Enix	N/A	N/A	N/A
Uxin	-8.55%	N/A	-9.71%

Valuation and Earnings

This table compares Square Enix and Uxin”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Square Enix	$2.13 billion	2.71	$161.13 million	$0.67	23.88
Uxin	$3.24 billion	0.17	-$39.69 million	($0.19)	-15.64

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

Risk & Volatility

Square Enix has a beta of 0.54, indicating that its share price is 46% less volatile than the S&P 500. Comparatively, Uxin has a beta of 1.55, indicating that its share price is 55% more volatile than the S&P 500.

Summary

Uxin beats Square Enix on 7 of the 13 factors compared between the two stocks.

About Square Enix

Square Enix Holdings Co., Ltd. operates in the content and service businesses in Japan and internationally. It operates through Digital Entertainment Business, Amusement Business, Publishing Business, and Rights Property Business. The company plans, develops, sells, and manages digital entertainment content primarily in the form of computer games. It is also involved in the operation of amusement facilities; and planning, development, manufacture, sale, and rental of arcade game machines and related products for amusement facilities. In addition, the company publishes and licenses comic books, magazines, game-related books, periodicals, etc. Further, it plans, produces, distributes, and licenses secondary works; and offers content under the SQUARE ENIX PRODUCTS brand; and stuffed toys and utility goods under the SQEX TOYS brand. The company was incorporated in 1975 and is headquartered in Tokyo, 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.