Critical Survey: SBI (OTCMKTS:SBHGF) and 9F (NASDAQ:JFU)

9F (NASDAQ:JFU) and SBI (OTCMKTS:SBHGF) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, profitability, analyst recommendations, valuation, earnings, risk and dividends.

Valuation & Earnings

This table compares 9F and SBI”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
9F	$295.14 million	0.06	-$19.75 million	N/A	N/A
SBI	$8.39 billion	0.96	$601.98 million	$2.07	12.90

SBI has higher revenue and earnings than 9F.

Analyst Recommendations

This is a summary of current ratings and price targets for 9F and SBI, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
9F	0	0	0	0	0.00
SBI	0	0	0	1	4.00

Profitability

This table compares 9F and SBI’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
9F	N/A	N/A	N/A
SBI	7.24%	5.09%	0.35%

Volatility and Risk

9F has a beta of 0.45, suggesting that its share price is 55% less volatile than the S&P 500. Comparatively, SBI has a beta of 1, suggesting that its share price has a similar volatility profile to the S&P 500.

Summary

SBI beats 9F on 9 of the 9 factors compared between the two stocks.

About 9F

9F Inc., together with its subsidiaries, operates internet securities service platform in the People's Republic of China. The company operates through three segments: Technology Empowerment Services, E-commerce business, and Wealth Management. Its products include digital financial accounts that offer online lending, wealth management, and payment facilitation services; revolving and non-revolving loan products to borrowers, as well as traffic referral services to financial institution partners; and a suite of online wealth management products, such as fixed income products, stocks, insurance, bank wealth management products, and mutual funds to investors in various platforms, including Wukong Licai, 9F Wallet, and 9F Puhui. The company also provides payment facilitation and other products and services that help users to pay credit card bills and household bills comprising utility bills; and other value-added services consisting of credit history search, debt consolidation, and user referral services. In addition, it offers technology empowerment services to banking, automobile, securities investment, and insurance industries; and engages in E-commerce business, which offers various categories of merchandise, including 3C products, beauty and skin care products, food, household appliances, and liquor and beverages. It provides its services to borrowers, investors, and financial institutions partners. The company was formerly known as JIUFU Financial Technology Service Limited and changed its name to 9F Inc. in June 2014. 9F Inc. was founded in 2006 and is headquartered in Beijing, the People's Republic of China.

About SBI

SBI Holdings, Inc. engages in the online securities and investment businesses. It operates through five business segments: Financial Services Business, Asset Management Business, Investment Business, Crypto-Asset Business, and Non-financial Business segments. The Financial Services Business segment consists of a range of finance-related business, including securities brokerage business; banking services business; and life, property, and casualty insurance business. The Asset Management Business segment includes setting, solicitation, and management of investment trust; investment advice; and financial products information. The Investment Business segment includes fund management and investment in Internet technology, fintech, blockchain, finance, and biotechnology-related venture companies; private equity; and funds management businesses. The Crypto-asset Business segment provides crypto-asset exchange and trading services. The Non-Financial Business segment consists of biotechnology; development and distribution of pharmaceutical products, health foods, and cosmetics with 5-aminolevulinic acid; research and development of antibody drugs and nucleic acid medicine in the field of cancer and immunology; the digitization of medical and health information; provision of solutions and services that promote the use of medical big data, medical finance; business working on advanced fields related to Web 3.0; and renewable energy business. The company is also involved in the real estate secured loans, online mobile game, and e-sports related businesses. In addition, it operates and develops cybersecurity systems; exports used cars; offers back-office support services; and develops, operates, manages, and invests in real estate properties. The company was formerly known as Softbank Investment Corporation and changed its name to SBI Holdings, Inc. in July 2005. SBI Holdings, Inc. was incorporated in 1999 and is headquartered in Tokyo, Japan.