Analyzing LexinFintech (LX) and The Competition

LexinFintech (NASDAQ: LX) is one of 31 public companies in the “Nondepository credit institutions” industry, but how does it weigh in compared to its competitors? We will compare LexinFintech to similar companies based on the strength of its valuation, earnings, analyst recommendations, profitability, risk, institutional ownership and dividends.

Analyst Recommendations

This is a summary of recent ratings for LexinFintech and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
LexinFintech 0 1 2 0 2.67
LexinFintech Competitors 194 783 1020 49 2.45

LexinFintech currently has a consensus target price of $20.27, suggesting a potential upside of 118.16%. As a group, “Nondepository credit institutions” companies have a potential upside of 26.75%. Given LexinFintech’s stronger consensus rating and higher probable upside, equities research analysts clearly believe LexinFintech is more favorable than its competitors.

Insider & Institutional Ownership

6.9% of LexinFintech shares are owned by institutional investors. Comparatively, 56.8% of shares of all “Nondepository credit institutions” companies are owned by institutional investors. 15.4% of shares of all “Nondepository credit institutions” companies are owned by company 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 LexinFintech and its competitors revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
LexinFintech $857.97 million $36.94 million 42.23
LexinFintech Competitors $4.31 billion $615.35 million 16.03

LexinFintech’s competitors have higher revenue and earnings than LexinFintech. LexinFintech is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares LexinFintech and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
LexinFintech N/A N/A N/A
LexinFintech Competitors 12.00% -59.05% -7.10%

LexinFintech Company Profile

LexinFintech Holdings Ltd., through its subsidiaries, operates as an online consumer finance platform for young adults in the People's Republic of China. The company operates Fenqile, an online consumer finance platform that offers personal installment loans, installment purchase loans, and other loan products, as well as Le Card credit line. It also matches customer loans with diversified funding sources, including individual investors on its Juzi Licai online investment platform, institutional funding partners in its direct lending programs, and investors of its asset-backed securities. The company was formerly known as Staging Finance Holding Ltd. and changed its name to LexinFintech Holdings Ltd. in March 2017. LexinFintech Holdings Ltd. was founded in 2013 and is headquartered in Shenzhen, the People's Republic of China.

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