Contrasting Uxin (NASDAQ:UXIN) & Winmark (NASDAQ:WINA)

Winmark (NASDAQ:WINA) and Uxin (NASDAQ:UXIN) are both small-cap consumer discretionary companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, institutional ownership, analyst recommendations, dividends, risk, earnings and valuation.

Volatility & Risk

Winmark has a beta of 0.56, indicating that its share price is 44% less volatile than the S&P 500. Comparatively, Uxin has a beta of 0.87, indicating that its share price is 13% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations and price targets for Winmark and Uxin, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Winmark	0	1	0	0	2.00
Uxin	1	0	1	0	2.00

Uxin has a consensus price target of $4.50, suggesting a potential upside of 463.91%. Given Uxin’s higher possible upside, analysts plainly believe Uxin is more favorable than Winmark.

Earnings & Valuation

This table compares Winmark and Uxin”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Winmark	$86.06 million	11.10	$41.65 million	$11.21	23.93
Uxin	$463.27 million	0.37	-$39.69 million	($0.28)	-2.85

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

Insider & Institutional Ownership

73.3% of Winmark shares are held by institutional investors. Comparatively, 22.4% of Uxin shares are held by institutional investors. 10.4% of Winmark shares are held by insiders. Comparatively, 62.9% of Uxin shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Winmark	45.13%	-94.74%	111.43%
Uxin	-10.10%	N/A	-16.37%

Summary

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

About Winmark

Winmark Corporation, a resale company operates as a franchisor for small business in the United States and Canada. The company franchises retail stores concepts that buy, sell and trade merchandise. It also operates middle-market equipment leasing business. In addition, the company buys and sells used clothing and accessories geared toward the teenage and young adult market under Plato’s Closet brand; and operates stores which buys and sells used and new children’s clothing, toys, furniture, equipment, and accessories primarily to parents of children ages infant to 12 years under the Once Upon A Child brand. Further, it buys, sells, trades in, and used and new sporting goods, equipment, and accessories for various athletic activities including team sports, such as baseball/softball, hockey, football, lacrosse, and soccer, as well as fitness, ski/snowboard, golf, and others under the Play It Again Sports brand; and buys and sells used women’s apparel, shoes, and accessories under the Style Encore brand. Additionally, the company buys, sells, trades in, and used and new musical instruments, speakers, amplifiers, music-related electronics, and related accessories under the Music Go Round brand. Winmark Corporation was incorporated in 1988 and is headquartered in Minneapolis, Minnesota.

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.