Head-To-Head Comparison: SBI (OTCMKTS:SBHGF) and Weidai (OTCMKTS:WEI)

Weidai (NYSE:WEI) and SBI (OTCMKTS:SBHGF) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, institutional ownership, valuation, dividends, analyst recommendations, earnings and profitability.

Profitability

This table compares Weidai and SBI’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Weidai N/A N/A N/A
SBI 14.24% 9.93% 1.08%



Valuation and Earnings

This table compares Weidai and SBI’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Weidai $569.19 million 0.75 $87.50 million N/A N/A
SBI $3.04 billion 1.72 $420.15 million N/A N/A

SBI has higher revenue and earnings than Weidai.

Institutional and Insider Ownership

0.8% of Weidai shares are held by institutional investors. Comparatively, 0.0% of SBI shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Weidai and SBI, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Weidai 0 0 2 0 3.00
SBI 0 0 0 0 N/A

Weidai currently has a consensus target price of $13.00, indicating a potential upside of 112.77%. Given Weidai’s higher possible upside, research analysts clearly believe Weidai is more favorable than SBI.

Summary

SBI beats Weidai on 6 of the 9 factors compared between the two stocks.

Weidai Company Profile

Weidai Ltd., through its subsidiaries, provides auto-backed financing solutions in the People's Republic of China. Its auto-backed financing platform connects borrowers primarily mall and micro enterprise owners with online investors and institutional funding partners. The company was founded in 2011 and is headquartered in Hangzhou, the People's Republic of China.

SBI Company Profile

SBI Holdings, Inc., together with its subsidiaries, engages in the online financial service businesses and investment activities in Japan and internationally. It operates through Financial Services Business, Asset Management Business, and Biotechnology-Related Business segments. The Financial Services Business segment provides various financial products and services, including brokerage and investment banking, banking, nonlife insurance and short-term small-amount insurance, and housing loan services; and credit card, leasing, remittance, peer-to-peer lending, and other services, as well as foreign-exchange market participant services. This segment operates proprietary trading system, which allows investors to trade stocks and bonds through electronic trading systems without stock exchanges. The Asset Management Business segment is involved in the venture capital, buyout investment, and financial and economic information activities. This segment also provides asset management services; and invests in hedge funds and private equity funds. The Biotechnology-Related Business segment develops, distributes, and sells pharmaceutical products, health foods, and cosmetics with 5-ALA as ingredient. This segment is also involved in the research and development of treatment methods and pharmaceuticals in autoimmune diseases and cancer fields. The company is also involved in the operation of various online intermediate services; development and trading of investment properties; provision of guarantee services for house rentals; and manufacture of mining chips, and development of mining systems. The company was formerly known as Softbank Investment Corporation and changed its name to SBI Holdings, Inc. in July 2005. SBI Holdings, Inc. was founded in 1999 and is headquartered in Tokyo, Japan.

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