Head-To-Head Review: CNFinance (NYSE:CNF) & Better Home & Finance (NASDAQ:BETR)

Risk and Volatility

CNFinance has a beta of 0.05, meaning that its share price is 95% less volatile than the S&P 500. Comparatively, Better Home & Finance has a beta of 1.58, meaning that its share price is 58% more volatile than the S&P 500.

Valuation & Earnings

This table compares CNFinance and Better Home & Finance”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CNFinance	$342.20 million	0.06	$5.26 million	$0.31	9.85
Better Home & Finance	$108.49 million	3.43	-$206.29 million	($13.21)	-1.84

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

Profitability

This table compares CNFinance and Better Home & Finance’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CNFinance	N/A	N/A	N/A
Better Home & Finance	-153.25%	-1,105.80%	-16.80%

Institutional and Insider Ownership

20.9% of Better Home & Finance shares are held by institutional investors. 25.8% of CNFinance shares are held by company insiders. Comparatively, 23.6% of Better Home & Finance 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.

Summary

CNFinance beats Better Home & Finance on 8 of the 11 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 Better Home & Finance

Better Home & Finance Holding Co. engages in the provision of comprehensive homeownership services. It offers mortgage loans, real estate agent services, and title and homeowner’s insurance services. The company was founded in 2014 and is headquartered in New York, NY.