Reviewing MBIA (NYSE:MBI) and Zhibao Technology (NASDAQ:ZBAO)

Zhibao Technology (NASDAQ:ZBAO) and MBIA (NYSE:MBI) are both small-cap finance companies, but which is the better business? We will compare the two businesses based on the strength of their risk, analyst recommendations, dividends, institutional ownership, profitability, valuation and earnings.

Earnings and Valuation

This table compares Zhibao Technology and MBIA”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Zhibao Technology	$38.66 million	0.69	-$8.66 million	N/A	N/A
MBIA	$42.00 million	7.28	-$444.00 million	($3.64)	-1.66

Zhibao Technology has higher earnings, but lower revenue than MBIA.

Insider and Institutional Ownership

61.0% of MBIA shares are held by institutional investors. 12.6% of MBIA shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Zhibao Technology and MBIA, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Zhibao Technology	1	0	0	0	1.00
MBIA	1	0	1	0	2.00

MBIA has a consensus price target of $8.50, suggesting a potential upside of 40.43%. Given MBIA’s stronger consensus rating and higher probable upside, analysts clearly believe MBIA is more favorable than Zhibao Technology.

Profitability

This table compares Zhibao Technology and MBIA’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Zhibao Technology	N/A	N/A	N/A
MBIA	-198.88%	N/A	-2.12%

Risk & Volatility

Zhibao Technology has a beta of 1.89, indicating that its share price is 89% more volatile than the S&P 500. Comparatively, MBIA has a beta of 1.89, indicating that its share price is 89% more volatile than the S&P 500.

Summary

MBIA beats Zhibao Technology on 7 of the 10 factors compared between the two stocks.

About Zhibao Technology

Zhibao Technology Inc., through its subsidiaries, provides digital insurance brokerage services in China. It also offers managing general underwriter services; and offline insurance brokerage consulting services. The company was founded in 2015 and is based in Shanghai, China.

About MBIA

MBIA Inc. provides financial guarantee insurance services to public finance markets in the United States. It operates United States (U.S.) Public Finance Insurance, and International and Structured Finance Insurance segments. The company issues financial guarantees for municipal bonds, including tax-exempt and taxable indebtedness of the U.S. political subdivisions, as well as utility districts, airports, health care institutions, higher educational facilities, housing authorities, and other similar agencies and obligations issued by private entities. It also insures the non-U.S. public finance and global structured finance, including asset-backed obligations; and sovereign-related and sub-sovereign bonds, and privately issued bonds used for the financing for utilities, toll roads, bridges, public transportation facilities, and other types of infrastructure projects, as well as offers third-party reinsurance services. MBIA Inc. was founded in 1973 and is headquartered in Purchase, New York.