Mercurity Fintech (NASDAQ:MFH) and Qudian (NYSE:QD) Critical Comparison

Qudian (NYSE:QD) and Mercurity Fintech (NASDAQ:MFH) are both small-cap finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, earnings, risk, dividends, institutional ownership and profitability.

Valuation and Earnings

This table compares Qudian and Mercurity Fintech’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Qudian	$17.79 million	21.14	$5.51 million	($0.30)	-6.25
Mercurity Fintech	$445,928.00	185.80	-$9.36 million	N/A	N/A

Qudian has higher revenue and earnings than Mercurity Fintech.

Analyst Ratings

This is a breakdown of recent ratings for Qudian and Mercurity Fintech, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Qudian	0	0	0	0	N/A
Mercurity Fintech	0	0	0	0	N/A

Risk & Volatility

Qudian has a beta of 0.63, suggesting that its share price is 37% less volatile than the S&P 500. Comparatively, Mercurity Fintech has a beta of 1.93, suggesting that its share price is 93% more volatile than the S&P 500.

Institutional and Insider Ownership

8.1% of Qudian shares are owned by institutional investors. Comparatively, 30.8% of Mercurity Fintech shares are owned by institutional investors. 25.7% of Qudian shares are owned by insiders. Comparatively, 62.8% of Mercurity Fintech shares are owned by insiders. 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.

Profitability

This table compares Qudian and Mercurity Fintech’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Qudian	-278.52%	-3.78%	-3.56%
Mercurity Fintech	N/A	N/A	N/A

Summary

Mercurity Fintech beats Qudian on 7 of the 9 factors compared between the two stocks.

About Qudian

Qudian Inc. operates as a consumer-oriented technology company in the People's Republic of China. The company engages in the operation of online platforms to provide small consumer credit products. It also provides technology development and services; research and development services; and delivery services. The company was founded in 2014 and is headquartered in Xiamen, the People's Republic of China.

About Mercurity Fintech

Mercurity Fintech Holding Inc. operates as a fintech company powered by blockchain. The company provides digital asset trading infrastructure solutions based on internet and blockchain technologies for cryptocurrency traders; and asset digitalization platform, which offers blockchain-based digitalization solutions for traditional assets, such as fiat currencies, bonds, and precious metals. It also offers cryptocurrency mining services that provides computing power to the mining pool; and digital consultation services, such as digital payment solutions, asset management, and online and traditional brokerage services. The company was formerly known as JMU Limited and changed its name to Mercurity Fintech Holding Inc. in April 2020. Mercurity Fintech Holding Inc. was incorporated in 2011 and is headquartered in New York, New York.