Better Home & Finance (NASDAQ:BETR – Get Free Report) and CNFinance (NYSE:CNF – Get Free Report) are both small-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, valuation, dividends, profitability, institutional ownership, risk and analyst recommendations.
Volatility & Risk
Better Home & Finance has a beta of 1.58, suggesting that its stock price is 58% more volatile than the S&P 500. Comparatively, CNFinance has a beta of 0.05, suggesting that its stock price is 95% less volatile than the S&P 500.
Insider & Institutional Ownership
20.9% of Better Home & Finance shares are held by institutional investors. 23.6% of Better Home & Finance shares are held by company insiders. Comparatively, 25.8% of CNFinance shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Better Home & Finance | 0 | 0 | 0 | 0 | 0.00 |
| CNFinance | 0 | 1 | 0 | 1 | 3.00 |
Profitability
This table compares Better Home & Finance and CNFinance’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Better Home & Finance | -153.25% | -1,105.80% | -16.80% |
| CNFinance | N/A | N/A | N/A |
Valuation and Earnings
This table compares Better Home & Finance and CNFinance”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Better Home & Finance | $159.81 million | 5.63 | -$206.29 million | ($13.21) | -4.45 |
| CNFinance | $205.99 million | 0.13 | $5.26 million | $0.31 | 13.00 |
CNFinance has higher revenue and earnings than Better Home & Finance. Better Home & Finance is trading at a lower price-to-earnings ratio than CNFinance, indicating that it is currently the more affordable of the two stocks.
Summary
CNFinance beats Better Home & Finance on 10 of the 13 factors compared between the two stocks.
About Better Home & Finance
Better Home & Finance Holding Co. engages in the provision of comprehensive homeownership services. It offers mortgage loans, real estate agent services, and title and homeowner’s insurance services. The company was founded in 2014 and is headquartered in New York, NY.
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.
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