Contrasting BTCS (NASDAQ:BTCS) and X Financial (NYSE:XYF)

X Financial (NYSE:XYF) and BTCS (NASDAQ:BTCS) are both small-cap finance companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, earnings, risk, valuation, institutional ownership and profitability.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for X Financial and BTCS, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
X Financial	0	0	0	0	N/A
BTCS	0	0	1	0	3.00

BTCS has a consensus price target of $3.00, indicating a potential upside of 152.10%. Given BTCS’s higher probable upside, analysts clearly believe BTCS is more favorable than X Financial.

Volatility and Risk

X Financial has a beta of 0.27, suggesting that its stock price is 73% less volatile than the S&P 500. Comparatively, BTCS has a beta of 1.52, suggesting that its stock price is 52% more volatile than the S&P 500.

Institutional & Insider Ownership

1.1% of X Financial shares are owned by institutional investors. Comparatively, 3.5% of BTCS shares are owned by institutional investors. 31.6% of X Financial shares are owned by company insiders. Comparatively, 40.2% of BTCS shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares X Financial and BTCS”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
X Financial	$2.23 billion	0.12	$167.16 million	$3.54	1.60
BTCS	$1.65 million	11.29	$7.82 million	$1.29	0.92

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
X Financial	25.38%	20.63%	10.74%
BTCS	993.08%	-13.94%	-12.32%

Dividends

X Financial pays an annual dividend of $0.32 per share and has a dividend yield of 5.6%. BTCS pays an annual dividend of $0.05 per share and has a dividend yield of 4.2%. X Financial pays out 9.0% of its earnings in the form of a dividend. BTCS pays out 3.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Summary

BTCS beats X Financial on 8 of the 15 factors compared between the two stocks.

About X Financial

X Financial provides personal finance services in the People’s Republic of China. The company offers services as an online marketplace connecting borrowers and investors or institutional funding partners. Its loan products include Xiaoying credit loan, which consists of Xiaoying card loan; and Xiaoying preferred loan to small business owners. The company also offers Xiaoying housing loan, a home equity loan product for property owners; investment products through Xiaoying wealth management platform, such as funds, money market, and insurance products; and loan facilitation services to other platforms. In addition, it engages in the technology development, service, and sale of products; and provision of guarantee and consulting services. The company was incorporated in 2014 and is headquartered in Shenzhen, the People’s Republic of China.

About BTCS

BTCS Inc. operates in blockchain technology sector the United States. Its blockchain-infrastructure secures and operates validator nodes on disruptive blockchain networks, as well as validates transactions for crypto holding delegations on dPoS blockchains. The company offers StakeSeeker, a cryptocurrency dashboard and staking-as-a-service platform that allows crypto asset holders to earn rewards by participating in network consensus mechanisms; and Builder+, a Ethereum block builder offered to maximize validator earnings by utilizing algorithms to construct optimized blocks for on-chain validation. In addition, it is involved in the development of ChainQ, an AI-powered blockchain data and analytics platform, which allows users to query real-time and historical on-chain blockchain data. The company was formerly known as Bitcoin Shop, Inc. and changed its name to BTCS Inc. in July 2015. BTCS Inc. was founded in 2014 and is based in Silver Spring, Maryland.