Analyzing Hitek Global (NASDAQ:HKIT) & Enfusion (NYSE:ENFN)

Hitek Global (NASDAQ:HKIT) and Enfusion (NYSE:ENFN) are both small-cap business services companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, dividends, profitability, valuation, earnings, risk and institutional ownership.

Insider and Institutional Ownership

1.2% of Hitek Global shares are held by institutional investors. Comparatively, 81.1% of Enfusion shares are held by institutional investors. 39.2% of Enfusion shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Hitek Global and Enfusion’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hitek Global	$4.56 million	3.63	$1.05 million	N/A	N/A
Enfusion	$174.54 million	6.80	$6.03 million	$0.08	115.83

Enfusion has higher revenue and earnings than Hitek Global.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Hitek Global and Enfusion, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hitek Global	0	0	0	0	N/A
Enfusion	3	2	1	0	1.67

Enfusion has a consensus target price of $9.33, indicating a potential upside of 0.74%. Given Enfusion’s higher possible upside, analysts clearly believe Enfusion is more favorable than Hitek Global.

Profitability

This table compares Hitek Global and Enfusion’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hitek Global	N/A	N/A	N/A
Enfusion	3.45%	10.30%	7.78%

Summary

Enfusion beats Hitek Global on 10 of the 10 factors compared between the two stocks.

About Hitek Global

Hitek Global Inc. provides information technology (IT) consulting and solutions to small and medium businesses in various industry sectors in China. It offers anti-counterfeiting tax control system (ACTCS) tax devices, including golden tax disk and printers, ACTCS services, and IT services; and sells software and hardware to large businesses, such as laptops, printers, desktop computers, and related accessories, as well as Internet servers, cameras, and monitors. The company was founded in 1996 and is headquartered in Xiamen, China.

About Enfusion

Enfusion, Inc. provides software-as-a-service solutions for investment management industry in the United States, Europe, the Middle East, Africa, and the Asia Pacific. The company provides Portfolio Management System, which generates a real-time investment book of record that consists of valuation and risk tools, which allows users to analyze aggregated or decomposed portfolio data for chief investment officers (CIOs) and portfolio managers; and Order and Execution Management System that enables portfolio managers, traders, compliance teams, and analysts to electronically communicate trade orders for a variety of asset classes, manage trade orders, and systemically enforce trading regulations and internal guidelines. It also offers Accounting/General Ledger System, a real-time accounting book of record for chief financial officers, chief operating officers, accountants, and operations teams; Enfusion Analytics System, which enables CIOs, portfolio managers, traders, and analysts to analyze portfolios through time horizons and automate customized visualized reports for internal and external stakeholders; and technology-powered and managed services. Enfusion, Inc. was founded in 1997 and is headquartered in Chicago, Illinois.