Comparing Jiayin Group (NASDAQ:JFIN) & Bread Financial (NYSE:BFH)

Jiayin Group (NASDAQ:JFIN) and Bread Financial (NYSE:BFH) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, dividends, institutional ownership, earnings, valuation, risk and analyst recommendations.

Institutional & Insider Ownership

44.1% of Jiayin Group shares are held by institutional investors. Comparatively, 99.5% of Bread Financial shares are held by institutional investors. 51.2% of Jiayin Group shares are held by insiders. Comparatively, 1.3% of Bread Financial shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Jiayin Group and Bread Financial, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Jiayin Group	1	0	0	0	1.00
Bread Financial	1	5	8	1	2.60

Bread Financial has a consensus target price of $112.08, indicating a potential upside of 1.24%. Given Bread Financial’s stronger consensus rating and higher possible upside, analysts plainly believe Bread Financial is more favorable than Jiayin Group.

Risk and Volatility

Jiayin Group has a beta of 0.92, meaning that its stock price is 8% less volatile than the S&P 500. Comparatively, Bread Financial has a beta of 1.1, meaning that its stock price is 10% more volatile than the S&P 500.

Valuation and Earnings

This table compares Jiayin Group and Bread Financial”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Jiayin Group	$889.76 million	0.10	$219.61 million	$0.64	2.66
Bread Financial	$4.70 billion	0.91	$518.00 million	$12.82	8.63

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

Profitability

This table compares Jiayin Group and Bread Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Jiayin Group	5.39%	5.02%	2.57%
Bread Financial	11.95%	18.42%	2.76%

Summary

Bread Financial beats Jiayin Group on 14 of the 15 factors compared between the two stocks.

About Jiayin Group

Jiayin Group Inc., together with its subsidiaries, provides online consumer finance services in the People's Republic of China. The company operates a fintech platform that facilitates connections between individual borrowers and financial institutions. It also offers referral services for investment products offered by the financial service providers; and technology development and services, as well as guarantee services. The company was founded in 2011 and is headquartered in Shanghai, the People's Republic of China. Jiayin Group Inc. operates as a subsidiary of New Dream Capital Holdings Limited.

About Bread Financial

Bread Financial Holdings, Inc. provides tech-forward payment and lending solutions to customers and consumer-based industries in North America. It offers credit card and other loans financing services, including risk management solutions, account origination, and funding services for private label and co-brand credit card programs, as well as through Bread partnerships; and Comenity-branded general purpose cash-back credit. The company also manages and services the loans it originates for private label, co-brand, and general-purpose credit card programs, and installment loans and split-pay products; and provides marketing, and data and analytics services. In addition, it offers an enhanced digital suite that includes a unified software development kit, which provides access to its suite of products, as well as promotes credit payment options earlier in the shopping experience. Further, the company through Bread, a digital payments platform and robust suite of application programming interfaces allows merchants and partners to integrate online point-of-sale financing and other digital payment products. It offers its products under the Bread CashbackTM, Bread PayTM, and Bread SavingsTM brands. The company was formerly known as Alliance Data Systems Corporation and changed its name to Bread Financial Holdings, Inc. in March 2022. Bread Financial Holdings, Inc. was incorporated in 1995 and is headquartered in Columbus, Ohio.