Arlington Asset Investment (NYSE: AI) and China Internet Nationwide Fncl Srvcs (NASDAQ:CIFS) are both small-cap finance companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, analyst recommendations, valuation, institutional ownership, dividends, profitability and risk.
This table compares Arlington Asset Investment and China Internet Nationwide Fncl Srvcs’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Arlington Asset Investment||14.42%||4.68%||0.40%|
|China Internet Nationwide Fncl Srvcs||N/A||N/A||N/A|
This table compares Arlington Asset Investment and China Internet Nationwide Fncl Srvcs’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Arlington Asset Investment||$121.25 million||2.74||$17.43 million||$0.58||20.36|
|China Internet Nationwide Fncl Srvcs||$15.82 million||47.87||$13.88 million||$6.86||5.01|
Arlington Asset Investment has higher revenue and earnings than China Internet Nationwide Fncl Srvcs. China Internet Nationwide Fncl Srvcs is trading at a lower price-to-earnings ratio than Arlington Asset Investment, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings for Arlington Asset Investment and China Internet Nationwide Fncl Srvcs, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Arlington Asset Investment||0||2||2||0||2.50|
|China Internet Nationwide Fncl Srvcs||0||0||0||0||N/A|
Arlington Asset Investment presently has a consensus target price of $13.31, indicating a potential upside of 12.72%. Given Arlington Asset Investment’s higher possible upside, research analysts plainly believe Arlington Asset Investment is more favorable than China Internet Nationwide Fncl Srvcs.
Insider and Institutional Ownership
41.9% of Arlington Asset Investment shares are owned by institutional investors. Comparatively, 1.2% of China Internet Nationwide Fncl Srvcs shares are owned by institutional investors. 5.9% of Arlington Asset Investment shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Arlington Asset Investment pays an annual dividend of $2.20 per share and has a dividend yield of 18.6%. China Internet Nationwide Fncl Srvcs does not pay a dividend. Arlington Asset Investment pays out 379.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Arlington Asset Investment beats China Internet Nationwide Fncl Srvcs on 11 of the 14 factors compared between the two stocks.
Arlington Asset Investment Company Profile
Arlington Asset Investment Corp. is an investment company. The Company focuses on acquiring and holding a levered portfolio of residential mortgage-backed securities (MBS), consisting of agency MBS and private-label MBS. Agency MBS include residential mortgage pass-through certificates for which the principal and interest payments are guaranteed by a United States Government agency or government-sponsored enterprise (GSE), such as the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac). Private-label MBS, or non-agency MBS, include residential MBS that are not guaranteed by a GSE or the United States Government. The Company funds its investments primarily through short-term financing arrangements. The Company purchases agency MBS either in initial offerings or in the secondary market through broker-dealers or similar entities. It may invest in agency MBS collateralized by adjustable-rate mortgage loans (ARMs) or hybrid ARMs.
China Internet Nationwide Fncl Srvcs Company Profile
China Internet Nationwide Financial Services Inc is a holding company. The Company is engaged in the business of providing financial advisory services small-to-medium sized enterprises (SMEs). The Company, through its subsidiaries offers commercial payment advisory services, international corporate financing advisory services and intermediary bank loan advisory services. Commercial payment advisory service provides commercial payment advisory services to its clients. International corporate financing advisory services help its clients obtain financing to support their overseas business development. The Company’s subsidiaries include Hongkong Internet Financial Services Limited (HKIFS), Beijing Yingxin Yijia Network Technology Co., Ltd (WFOE), Sheng Ying Xin (Beijing) Management Consulting Co., Ltd (Sheng Ying Xin or SYX), and Kashgar Sheng Yingxin Enterprise Consulting Co., Ltd. (Kashgar SYX).
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