Critical Contrast: Qudian (NYSE:QD) versus Mr. Cooper Group (NYSE:COOP)

Mr. Cooper Group (NASDAQ:COOP) and Qudian (NYSE:QD) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their risk, valuation, analyst recommendations, dividends, earnings, institutional ownership and profitability.

Earnings & Valuation

This table compares Mr. Cooper Group and Qudian’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Mr. Cooper Group $1.79 billion 0.41 $1.04 billion N/A N/A
Qudian $1.12 billion 2.22 $362.35 million $1.13 6.65

Mr. Cooper Group has higher revenue and earnings than Qudian.

Institutional & Insider Ownership

83.7% of Mr. Cooper Group shares are owned by institutional investors. Comparatively, 11.8% of Qudian shares are owned by institutional investors. 0.9% of Mr. Cooper Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Mr. Cooper Group and Qudian’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Mr. Cooper Group 47.66% 62.93% 6.98%
Qudian 38.69% 28.87% 18.13%

Analyst Ratings

This is a breakdown of recent recommendations for Mr. Cooper Group and Qudian, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Mr. Cooper Group 1 1 2 0 2.25
Qudian 0 5 1 0 2.17

Mr. Cooper Group presently has a consensus target price of $17.50, indicating a potential upside of 117.39%. Qudian has a consensus target price of $14.50, indicating a potential upside of 93.08%. Given Mr. Cooper Group’s stronger consensus rating and higher possible upside, equities analysts plainly believe Mr. Cooper Group is more favorable than Qudian.

Volatility & Risk

Mr. Cooper Group has a beta of 0.55, suggesting that its stock price is 45% less volatile than the S&P 500. Comparatively, Qudian has a beta of 1.64, suggesting that its stock price is 64% more volatile than the S&P 500.

Summary

Mr. Cooper Group beats Qudian on 9 of the 12 factors compared between the two stocks.

About Mr. Cooper Group

Mr. Cooper Group Inc. provides servicing, origination, and transaction-based services related principally to single-family residences in the United States. The company operates through three segments: Servicing, Originations, and Xome. The Servicing segment performs activities for originated and purchased loans, as well as operates as a subservicer for various clients that own the underlying servicing rights. The Originations segment originates, purchases, and sells mortgage loans. The Xome segment offers technology and data enhanced solutions to home buyers, home sellers, real estate professionals, and companies engaged in the servicing and origination of mortgage loans. The company operates primarily under the Mr. Cooper and Xome brands. The company was formerly known as WMIH Corp. and changed its name to Mr. Cooper Group Inc. in October 2018. Mr. Cooper Group Inc. is headquartered in Coppell, Texas.

About Qudian

Qudian Inc. provides online small consumer credit products in the People's Republic of China. It uses big data-enabled technologies, including artificial intelligence and machine learning to transform the consumer finance experience. The company offers small credit products, such as cash credit products; merchandise credit products to finance borrowers' direct purchase of merchandise offered on its marketplace on installment basis; and budget auto financing products. In addition, it operates a platform for loan recommendations and referrals. Qudian Inc. was founded in 2014 and is headquartered in Beijing, the People's Republic of China.

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