Financial Analysis: Green Dot (NYSE:GDOT) & X Financial (NYSE:XYF)

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

Insider and Institutional Ownership

1.1% of X Financial shares are held by institutional investors. Comparatively, 86.3% of Green Dot shares are held by institutional investors. 7.8% of Green Dot shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Dividends

X Financial pays an annual dividend of $0.09 per share and has a dividend yield of 2.4%. Green Dot does not pay a dividend. X Financial pays out 10.6% of its earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for X Financial and Green Dot, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
X Financial 0 2 0 0 2.00
Green Dot 0 5 7 0 2.58

Green Dot has a consensus price target of $83.46, indicating a potential upside of 70.68%. Given Green Dot’s stronger consensus rating and higher possible upside, analysts plainly believe Green Dot is more favorable than X Financial.

Valuation & Earnings

This table compares X Financial and Green Dot’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
X Financial $514.96 million 1.10 $128.44 million $0.85 4.41
Green Dot $1.04 billion 2.49 $118.70 million $2.53 19.33

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

Profitability

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

Net Margins Return on Equity Return on Assets
X Financial N/A N/A N/A
Green Dot 10.56% 15.74% 5.76%

Summary

Green Dot beats X Financial on 13 of the 15 factors compared between the two stocks.

X Financial Company Profile

X Financial provides personal finance services in the People's Republic of China. The company offers a suite of products connecting borrowers and investors through a proprietary Internet platform. It provides loan products, which include Xiaoying card loan and Xiaoying preferred loan; and investment opportunities through wealth management platform, Xiaoying wealth management with insurance protection. X Financial was founded in 2014 and is headquartered in Shenzhen, the People's Republic of China.

Green Dot Company Profile

Green Dot Corporation operates as a financial technology and bank holding company in the United States. It operates in two segments, Account Services, and Processing and Settlement Services. The company offers deposit account programs, such network-branded reloadable prepaid debit cards under the consumer brand names of GPR cards, consumer and small business checking accounts, network-branded gift cards, secured credit cards, and other financial services. It also provides swipe reload system for crediting cash onto an enabled payment card by swiping the payment card at the point-of-sale through Green Dot Network participating retailer; MoneyPak, a product that allows a consumer to add funds to accounts; and e-cash remittance, a service that allows a consumer to transfer funds to a smartphone, as well as offers disbursement services through Simply Paid platform. In addition, the company offers prepaid cards, debit cards, payroll debit cards, consumer cash processing services, wage disbursements, and tax refund processing services, as well as issuing, settlement, and capital management services. Further, it provides mobile banking, loan disbursement accounts, mobile P2P, money transfer, instant payment, and processing and settlement services. The company markets its products under the brand names of Green Dot, GoBank, MoneyPak, AccountNow, RushCard, and RapidPay. Green Dot Corporation markets and sells its products and services through retail stores, various direct-to-consumer Websites, corporate distribution partnerships, tax preparation companies and individual tax preparers, and apps, as well as distributes through ‘Banking as a Service' platform. The company was formerly known as Next Estate Communications, Inc. and changed its name to Green Dot Corporation in October 2005. Green Dot Corporation was incorporated in 1999 and is headquartered in Pasadena, California.

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