Analyzing XChange TEC.INC. (NASDAQ:XHG) & Arbe Robotics (NASDAQ:ARBE)

XChange TEC.INC. (NASDAQ:XHG) and Arbe Robotics (NASDAQ:ARBE) are both small-cap business services companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, valuation, profitability, earnings, analyst recommendations, institutional ownership and dividends.

Analyst Ratings

This is a breakdown of current recommendations for XChange TEC.INC. and Arbe Robotics, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
XChange TEC.INC.	0	0	0	0	0.00
Arbe Robotics	0	1	2	0	2.67

Arbe Robotics has a consensus target price of $2.25, indicating a potential upside of 80.00%. Given Arbe Robotics’ stronger consensus rating and higher probable upside, analysts plainly believe Arbe Robotics is more favorable than XChange TEC.INC..

Valuation and Earnings

This table compares XChange TEC.INC. and Arbe Robotics”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
XChange TEC.INC.	$41.09 million	0.00	-$32.32 million	N/A	N/A
Arbe Robotics	$770,000.00	170.91	-$49.32 million	($0.56)	-2.23

XChange TEC.INC. has higher revenue and earnings than Arbe Robotics.

Volatility & Risk

XChange TEC.INC. has a beta of -0.82, indicating that its share price is 182% less volatile than the S&P 500. Comparatively, Arbe Robotics has a beta of 0.42, indicating that its share price is 58% less volatile than the S&P 500.

Profitability

This table compares XChange TEC.INC. and Arbe Robotics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
XChange TEC.INC.	N/A	N/A	N/A
Arbe Robotics	-9,094.40%	-96.24%	-56.75%

Institutional and Insider Ownership

33.4% of Arbe Robotics shares are held by institutional investors. 0.6% of XChange TEC.INC. 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.

About XChange TEC.INC.

XChange TEC.INC engages in the professional insurance agency business in the People’s Republic of China. The company provides a various insurance products underwritten by insurance companies, including state-owned property and casualty insurance companies, as well as various regional property and casualty insurance companies. It also offers automobile, life, health, group accident, and other property related insurances primarily to individual end consumers. In addition, the company operates a SaaS platform to offer comprehensive services to online customers. It sells insurance primarily through a network of external referral sources that include external registered sales representatives and strategic channel partners, as well as through the in-house sales force. The company was formerly known as FLJ Group Limited and changed its name to XChange TEC.INC in May 2024. XChange TEC.INC was founded in 2012 and is based in Shanghai, the People’s Republic of China.

About Arbe Robotics

Arbe Robotics Ltd., a semiconductor company, provides 4D imaging radar solutions for tier 1 automotive suppliers and automotive manufacturers in China, Hong Kong, Sweden, Germany, the United States, Israel, and internationally. It offers 4D imaging radar chipset solutions that address the core issues that have caused autonomous vehicle and autopilot accidents, such as detecting stationary objects, identifying vulnerable road users, operation at poor lighting conditions, and eliminating false alarms without radar ambiguities. The company was founded in 2015 and is headquartered in Tel Aviv-Yafo, Israel.