Analyzing CNFinance (NYSE:CNF) & Rocket Companies (NYSE:RKT)

CNFinance (NYSE:CNF) and Rocket Companies (NYSE:RKT) are both finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, risk, profitability, institutional ownership, dividends, earnings and analyst recommendations.

Risk and Volatility

CNFinance has a beta of -0.01, meaning that its share price is 101% less volatile than the S&P 500. Comparatively, Rocket Companies has a beta of 2.28, meaning that its share price is 128% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings for CNFinance and Rocket Companies, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CNFinance	0	0	0	0	0.00
Rocket Companies	2	10	1	0	1.92

Rocket Companies has a consensus target price of $14.42, indicating a potential downside of 2.10%. Given Rocket Companies’ stronger consensus rating and higher probable upside, analysts clearly believe Rocket Companies is more favorable than CNFinance.

Insider and Institutional Ownership

4.6% of Rocket Companies shares are held by institutional investors. 25.8% of CNFinance shares are held by insiders. Comparatively, 92.6% of Rocket Companies shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares CNFinance and Rocket Companies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CNFinance	N/A	N/A	N/A
Rocket Companies	0.06%	3.61%	1.27%

Valuation & Earnings

This table compares CNFinance and Rocket Companies”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CNFinance	$205.99 million	0.24	$5.26 million	$0.31	2.31
Rocket Companies	$5.10 billion	5.78	$29.37 million	($0.03)	-491.10

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

Summary

Rocket Companies beats CNFinance on 12 of the 14 factors compared between the two stocks.

About CNFinance

CNFinance Holdings Limited, through its subsidiaries, provides home equity loan services in the People's Republic of China. It offers micro credit loan services for micro and small-enterprise owners; and loan lending agency services for financial institutions. The company provides bridge loan products, which are unsecured short-term loans to pay off borrowers' existing loans secured by real property. It operates approximately 87 branches and sub-branches in China. The company was founded in 1999 and is headquartered in Guangzhou, the People's Republic of China.

About Rocket Companies

Rocket Companies, Inc., a fintech holding company, provides mortgage lending, title and settlement services, and other financial technology services in the United States and Canada. It operates through two segments, Direct to Consumer and Partner Network. The company’s solutions include Rocket Mortgage, a mortgage lender; Amrock that provides title insurance, property valuation, and settlement services; Rocket Homes, a home search platform and real estate agent referral network, which offers technology-enabled services to support the home buying and selling experience; and Rocket Loans, an online-based personal loans business. It also offers Core Digital Media, a online marketing platform in the mortgage and personal financial product sectors; Rocket Money, a personal finance app that helps clients manage every aspect of their financial lives; Lendesk, a software services company that provides a point of sale system for mortgage professionals and a loan origination system for private lenders; Rock Connections, a sales and support platform specializing in contact center services; and Rocket Innovation Studio that recruits and mentors top technology talent. In addition, the company originates, closes, sells, and services agency-conforming loans. Rocket Companies, Inc. was founded in 1985 and is headquartered in Detroit, Michigan. The company operates as a subsidiary of Rock Holdings Inc.