Financial Review: Uxin (NASDAQ:UXIN) and Xunlei (NASDAQ:XNET)

Uxin (NASDAQ:UXIN) and Xunlei (NASDAQ:XNET) are both small-cap computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, dividends, risk, institutional ownership, valuation, analyst recommendations and earnings.

Earnings & Valuation

This table compares Uxin and Xunlei”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Uxin	$1.63 billion	0.33	-$11.18 million	($0.21)	-13.62
Xunlei	$324.40 million	1.39	$1.22 million	$19.91	0.36

Xunlei has lower revenue, but higher earnings than Uxin. Uxin is trading at a lower price-to-earnings ratio than Xunlei, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Uxin and Xunlei, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Uxin	1	0	0	0	1.00
Xunlei	0	1	0	0	2.00

Volatility & Risk

Uxin has a beta of 1.39, indicating that its share price is 39% more volatile than the S&P 500. Comparatively, Xunlei has a beta of 0.97, indicating that its share price is 3% less volatile than the S&P 500.

Profitability

This table compares Uxin and Xunlei’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Uxin	-12.39%	N/A	-8.81%
Xunlei	315.06%	2.75%	2.21%

Insider & Institutional Ownership

22.4% of Uxin shares are owned by institutional investors. Comparatively, 5.1% of Xunlei shares are owned by institutional investors. 62.9% of Uxin shares are owned by insiders. Comparatively, 21.7% of Xunlei shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Xunlei beats Uxin on 8 of the 12 factors compared between the two stocks.

About Uxin

Uxin Limited, an investment holding company, engages in the retail sale of vehicles in China. The company operates an e-commerce platform for buying and selling used cars. It also offers used-car acquisition, inspection, reconditioning, warehousing, pre-sales and after-sales, and various car-related value-added products and services, as well as warranty and repair, delivery, and title transfers and vehicle registration services. Uxin Limited was incorporated in 2011 and is headquartered in Beijing, China.

About Xunlei

Xunlei Limited, together with its subsidiaries, operates an internet platform for digital media content in the People's Republic of China. Its platform is based on cloud technology that enables users to access, store, manage, and consume digital media content. The company offers Xunlei Accelerator, which enables users to accelerate digital transmission over the internet; mobile acceleration plug-in, which provides mobile device users with benefits of download speed acceleration and download success rate improvements; and subscription services that offer users premium services through Green Channel and Fast Bird products. It also provides Mobile Xunlei, a mobile application that allows users to search, download, consume, and store digital media content; Xunlei Media Player, which supports online and offline play of digital media content, as well as simultaneous play of digital media content while it is being transmitted by Xunlei Accelerator; online games through online game website and mobile app; advertising services; live streaming products, including video and audio livestreaming; and develops software and computer software, as well as other internet value-added services. In addition, the company offers cloud computing services through OneThing Cloud, and StellarCloud; and hardware for edging computing, such as OneThing Edge Cube, and OneThing Edge Atom. Further it offers ThunderChain, a blockchain infrastructure product that enables its users to develop and manage blockchain applications. The company was formerly known as Giganology Limited and changed its name to Xunlei Limited in January 2011. Xunlei Limited was founded in 2003 and is headquartered in Shenzhen, the People's Republic of China.