Comparing BTCS (NASDAQ:BTCS) & X Financial (NYSE:XYF)

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

Insider & Institutional Ownership

3.5% of BTCS shares are held by institutional investors. Comparatively, 1.2% of X Financial shares are held by institutional investors. 40.2% of BTCS shares are held by company insiders. Comparatively, 31.6% of X Financial shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of recent recommendations for BTCS and X Financial, as provided by MarketBeat.

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

BTCS currently has a consensus price target of $3.00, suggesting a potential upside of 138.10%. Given BTCS’s higher probable upside, analysts clearly believe BTCS is more favorable than X Financial.

Profitability

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

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

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BTCS	$1.34 million	15.53	$7.82 million	$1.29	0.98
X Financial	$678.16 million	0.53	$167.16 million	$3.54	2.07

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.

Volatility and Risk

BTCS has a beta of 1.52, indicating that its stock price is 52% more volatile than the S&P 500. Comparatively, X Financial has a beta of 0.29, indicating that its stock price is 71% less volatile than the S&P 500.

Summary

BTCS beats X Financial on 7 of the 13 factors compared between the two stocks.

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.

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.