X Financial (NYSE:XYF) & Winland Electronics (OTCMKTS:WELX) Head to Head Comparison

X Financial (NYSE:XYF) and Winland Electronics (OTCMKTS:WELX) are both small-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, earnings, dividends, valuation, profitability and institutional ownership.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for X Financial and Winland Electronics, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
X Financial	0	1	0	0	2.00
Winland Electronics	0	0	0	0	0.00

Risk and Volatility

X Financial has a beta of 0.56, meaning that its share price is 44% less volatile than the S&P 500. Comparatively, Winland Electronics has a beta of 1.28, meaning that its share price is 28% more volatile than the S&P 500.

Profitability

This table compares X Financial and Winland Electronics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
X Financial	15.06%	14.38%	7.93%
Winland Electronics	N/A	N/A	N/A

Institutional & Insider Ownership

1.2% of X Financial shares are held by institutional investors. 31.6% of X Financial shares are held by insiders. Comparatively, 8.1% of Winland Electronics shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares X Financial and Winland Electronics”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
X Financial	$1.09 billion	0.17	$209.43 million	$3.45	1.39
Winland Electronics	$5.81 million	2.14	-$520,000.00	$0.50	4.90

X Financial has higher revenue and earnings than Winland Electronics. X Financial is trading at a lower price-to-earnings ratio than Winland Electronics, indicating that it is currently the more affordable of the two stocks.

Summary

X Financial beats Winland Electronics on 9 of the 12 factors compared between the two stocks.

About X Financial

X Financial provides personal finance services in the People’s Republic of China. The company offers services as an online marketplace connecting borrowers and investors or institutional funding partners. Its loan products include Xiaoying credit loan, which consists of Xiaoying card loan; and Xiaoying preferred loan to small business owners. The company also offers Xiaoying housing loan, a home equity loan product for property owners; investment products through Xiaoying wealth management platform, such as funds, money market, and insurance products; and loan facilitation services to other platforms. In addition, it engages in the technology development, service, and sale of products; and provision of guarantee and consulting services. The company was incorporated in 2014 and is headquartered in Shenzhen, the People’s Republic of China.

About Winland Electronics

Winland Holdings Corporation, through its subsidiaries, provides critical condition monitoring devices to the security industry. Its products are used to protect against loss of assets due to damage from water, excess humidity, extremes of temperature, and loss of power. The company offers EnviroAlert, which monitors temperature, humidity, and/or water presence in critical environments; TempAlert, a temperature monitoring device for residential and commercial environments through security systems; WaterBug, a water presence and leak detection system; and Power-Out Alert, a power outage detector. It also provides INSIGHT, an automated cloud-based platform that offers early alerting, reporting, and logging services designed to ensure regulatory compliance. The company offers its products through a network of distributors, dealers, security installers, and integrators for industries including health and medical, grocery and food services, and commercial and industrial, as well as agriculture and residential. Winland Holdings Corporation was incorporated in 1972 and is headquartered in Mankato, Minnesota.