CNFinance (NYSE:CNF) vs. Federal Agricultural Mortgage (NYSE:AGM) Financial Survey

CNFinance (NYSE:CNF) and Federal Agricultural Mortgage (NYSE:AGM) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, earnings, dividends, profitability, risk and institutional ownership.

Insider & Institutional Ownership

68.0% of Federal Agricultural Mortgage shares are owned by institutional investors. 25.8% of CNFinance shares are owned by insiders. Comparatively, 2.2% of Federal Agricultural Mortgage shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Volatility and Risk

CNFinance has a beta of -0.01, indicating that its share price is 101% less volatile than the S&P 500. Comparatively, Federal Agricultural Mortgage has a beta of 0.99, indicating that its share price is 1% less volatile than the S&P 500.

Profitability

This table compares CNFinance and Federal Agricultural Mortgage’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CNFinance	N/A	N/A	N/A
Federal Agricultural Mortgage	12.65%	18.77%	0.65%

Earnings and Valuation

This table compares CNFinance and Federal Agricultural Mortgage”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CNFinance	$205.99 million	0.25	$5.26 million	$0.31	2.39
Federal Agricultural Mortgage	$1.62 billion	1.33	$207.19 million	$16.18	12.26

Federal Agricultural Mortgage has higher revenue and earnings than CNFinance. CNFinance is trading at a lower price-to-earnings ratio than Federal Agricultural Mortgage, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for CNFinance and Federal Agricultural Mortgage, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CNFinance	0	0	0	0	0.00
Federal Agricultural Mortgage	0	1	0	0	2.00

Federal Agricultural Mortgage has a consensus target price of $215.00, suggesting a potential upside of 8.35%. Given Federal Agricultural Mortgage’s stronger consensus rating and higher possible upside, analysts clearly believe Federal Agricultural Mortgage is more favorable than CNFinance.

Summary

Federal Agricultural Mortgage beats CNFinance on 12 of the 13 factors compared between the two stocks.

About CNFinance

CNFinance Holdings Limited, through its subsidiaries, provides home equity loan services in the People's Republic of China. It offers micro credit loan services for micro and small-enterprise owners; and loan lending agency services for financial institutions. The company provides bridge loan products, which are unsecured short-term loans to pay off borrowers' existing loans secured by real property. It operates approximately 87 branches and sub-branches in China. The company was founded in 1999 and is headquartered in Guangzhou, the People's Republic of China.

About Federal Agricultural Mortgage

Federal Agricultural Mortgage Corporation provides a secondary market for various loans made to borrowers in the United States. It operates through four segments: Corporate AgFinance, Farm & Ranch, Rural Utilities, and Renewable Energy. The company’s Agricultural Finance line of business engages in purchasing and retaining eligible loans and securities; guaranteeing the payment of principal and interest on securities that represent interests in or obligations secured by pools of eligible loans; servicing eligible loans; and issuing LTSPCs for eligible loans. Its Rural Infrastructure Finance line of business is involved in the purchase of rural utilities loans and renewable energy loans and guarantees of securities backed by loans, as well as LTSPCs for pools of eligible rural utilities loans; by loans for electric or telecommunications facilities by lenders organized as cooperatives to borrowers; and other financial institutions that are secured by pools of eligible loans. Federal Agricultural Mortgage Corporation was incorporated in 1987 and is headquartered in Washington, the District of Columbia.