Analyzing CNFinance (CNF) & Its Peers

CNFinance (NYSE:CNF) is one of 334 publicly-traded companies in the “Financial Services” industry, but how does it weigh in compared to its peers? We will compare CNFinance to similar businesses based on the strength of its risk, valuation, institutional ownership, profitability, earnings, dividends and analyst recommendations.

Insider & Institutional Ownership

43.5% of shares of all “Financial Services” companies are owned by institutional investors. 25.8% of CNFinance shares are owned by insiders. Comparatively, 21.9% of shares of all “Financial Services” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares CNFinance and its peers gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
CNFinance	$80.76 million	-$65.43 million	1.35
CNFinance Competitors	$6.67 billion	$1.13 billion	10.48

CNFinance’s peers have higher revenue and earnings than CNFinance. CNFinance is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares CNFinance and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CNFinance	N/A	N/A	N/A
CNFinance Competitors	-258.35%	-39.89%	-4.62%

Risk & Volatility

CNFinance has a beta of 0.23, indicating that its stock price is 77% less volatile than the S&P 500. Comparatively, CNFinance’s peers have a beta of 2.55, indicating that their average stock price is 155% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for CNFinance and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CNFinance	1	0	0	0	1.00
CNFinance Competitors	1938	6960	11713	448	2.51

As a group, “Financial Services” companies have a potential downside of 5.28%. Given CNFinance’s peers stronger consensus rating and higher possible upside, analysts plainly believe CNFinance has less favorable growth aspects than its peers.

Summary

CNFinance peers beat CNFinance on 9 of the 13 factors compared.

About CNFinance

CNFinance Holdings Limited is a China-focused financial services company that provides home equity loan services. It primarily serves micro and small businesses and their owners, helping them obtain financing secured by real estate. The company works with borrowers and funding partners to facilitate loans and provides related services, including loan origination and servicing. Its business is centered on real estate-backed financing for customers who may have limited access to traditional bank credit.