Financial Survey: Uxin (NASDAQ:UXIN) versus Rakuten (OTCMKTS:RKUNY)

Uxin (NASDAQ:UXINGet Free Report) and Rakuten (OTCMKTS:RKUNYGet Free Report) are both computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, profitability, dividends, institutional ownership, risk and earnings.

Risk and Volatility

Uxin has a beta of 0.81, meaning that its share price is 19% less volatile than the S&P 500. Comparatively, Rakuten has a beta of 1.12, meaning that its share price is 12% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Uxin -8.46% N/A -11.67%
Rakuten -4.83% -10.02% -0.44%

Insider and Institutional Ownership

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

Valuation & Earnings

This table compares Uxin and Rakuten”s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Uxin $463.27 million 0.70 -$39.69 million ($0.21) -7.14
Rakuten $16.70 billion 0.58 -$1.19 billion ($0.37) -12.00

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

Analyst Ratings

This is a summary of current recommendations and price targets for Uxin and Rakuten, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Uxin 1 0 1 0 2.00
Rakuten 0 1 0 1 3.00

Uxin presently has a consensus target price of $4.50, suggesting a potential upside of 200.00%. Given Uxin’s higher probable upside, research analysts clearly believe Uxin is more favorable than Rakuten.

Summary

Uxin beats Rakuten on 9 of the 15 factors compared between the two stocks.

About Uxin

(Get Free Report)

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 Rakuten

(Get Free Report)

Rakuten Group, Inc. provides services in e-commerce, fintech, digital content, and communications to various users in Japan and internationally. The company operates through three segments: Internet Services, FinTech, and Mobile. The Internet Services segment provides range of e-commerce sites, such as Rakuten Ichiba, an Internet shopping mall, online cash-back sites, travel booking sites, portal sites, and digital content sites. It also offers messaging services and sells advertising; and manages professional sport teams. The FinTech segment offers financial services over the internet related to banking and securities, credit cards, life insurance, general insurance, electronic payment business, crypto asset (virtual currency) spot transaction, etc. The Mobile segment provides communication services and technology, electricity supply, and digital content site services. The company was formerly known as Rakuten, Inc. and changed its name to Rakuten Group, Inc. in April 2021. Rakuten Group, Inc. was incorporated in 1997 and is headquartered in Setagaya, Japan.

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