Mr. Cooper Group (NASDAQ:COOP) and LexinFintech (NASDAQ:LX) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, valuation, institutional ownership, dividends, risk and earnings.
Institutional & Insider Ownership
89.4% of Mr. Cooper Group shares are held by institutional investors. 1.5% of Mr. Cooper Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Analyst Recommendations
This is a breakdown of current recommendations for Mr. Cooper Group and LexinFintech, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Mr. Cooper Group | 0 | 1 | 7 | 0 | 2.88 |
LexinFintech | 0 | 0 | 6 | 0 | 3.00 |
Mr. Cooper Group presently has a consensus price target of $27.1429, suggesting a potential downside of 5.88%. LexinFintech has a consensus price target of $13.1950, suggesting a potential upside of 105.53%. Given LexinFintech's stronger consensus rating and higher probable upside, analysts plainly believe LexinFintech is more favorable than Mr. Cooper Group.
Volatility & Risk
Mr. Cooper Group has a beta of 1.56, suggesting that its stock price is 56% more volatile than the S&P 500. Comparatively, LexinFintech has a beta of 0.94, suggesting that its stock price is 6% less volatile than the S&P 500.
Profitability
This table compares Mr. Cooper Group and LexinFintech's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Mr. Cooper Group | 8.17% | 32.79% | 3.84% |
LexinFintech | 5.25% | 12.28% | 2.96% |
Earnings and Valuation
This table compares Mr. Cooper Group and LexinFintech's top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Mr. Cooper Group | $1.85 billion | 1.42 | $274 million | $3.80 | 7.59 |
LexinFintech | $1.52 billion | 0.74 | $329.59 million | $1.76 | 3.65 |
LexinFintech has lower revenue, but higher earnings than Mr. Cooper Group. LexinFintech is trading at a lower price-to-earnings ratio than Mr. Cooper Group, indicating that it is currently the more affordable of the two stocks.
Summary
Mr. Cooper Group beats LexinFintech on 10 of the 14 factors compared between the two stocks.