CNFinance (NYSE:CNF – Get Free Report) and Finance of America Companies (NYSE:FOA – Get Free Report) are both small-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, earnings, analyst recommendations, valuation and dividends.
Institutional and Insider Ownership
97.2% of Finance of America Companies shares are held by institutional investors. 25.8% of CNFinance shares are held by company insiders. Comparatively, 25.0% of Finance of America Companies shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Analyst Recommendations
This is a summary of current ratings for CNFinance and Finance of America Companies, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CNFinance | 0 | 1 | 0 | 1 | 3.00 |
| Finance of America Companies | 0 | 1 | 1 | 0 | 2.50 |
Earnings & Valuation
This table compares CNFinance and Finance of America Companies”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| CNFinance | $205.99 million | 0.10 | $5.26 million | $0.31 | 9.69 |
| Finance of America Companies | $338.17 million | 0.81 | $15.49 million | $6.11 | 4.03 |
Finance of America Companies has higher revenue and earnings than CNFinance. Finance of America Companies 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 Finance of America 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 |
| Finance of America Companies | N/A | 0.96% | 0.01% |
Risk & Volatility
CNFinance has a beta of 0.05, meaning that its stock price is 95% less volatile than the S&P 500. Comparatively, Finance of America Companies has a beta of 1.5, meaning that its stock price is 50% more volatile than the S&P 500.
Summary
Finance of America Companies beats CNFinance on 10 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 Finance of America Companies
Finance of America Companies Inc. a financial service holding company, through its subsidiaries, engages in the operation of a retirement solutions platform in the United States. It operates through two segments: Retirement Solutions and Portfolio Management. The Retirement Solutions segment engages in the loan origination activities comprising home equity conversion, proprietary reverse, and hybrid mortgage loans for senior homeowners. The Portfolio Management segment provides product development, loan securitization, loan sales, risk management, servicing oversight, and asset management services for borrowers and investors. The company was founded in 2013 and is headquartered in Plano, Texas.
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