Head-To-Head Survey: CNFinance (NYSE:CNF) vs. MDB Capital (NASDAQ:MDBH)

MDB Capital (NASDAQ:MDBH) and CNFinance (NYSE:CNF) are both small-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, institutional ownership, analyst recommendations, profitability, dividends, risk and earnings.

Analyst Recommendations

This is a breakdown of current ratings and price targets for MDB Capital and CNFinance, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MDB Capital	0	0	0	0	N/A
CNFinance	0	0	0	0	N/A

Profitability

This table compares MDB Capital and CNFinance’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MDB Capital	N/A	-56.19%	-48.57%
CNFinance	N/A	N/A	N/A

Valuation and Earnings

This table compares MDB Capital and CNFinance”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MDB Capital	$1.30 million	221.14	-$6.97 million	($2.53)	-2.65
CNFinance	$1.11 billion	0.09	$23.26 million	$0.31	4.94

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

Insider and Institutional Ownership

0.3% of MDB Capital shares are held by institutional investors. 25.8% of CNFinance shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

CNFinance beats MDB Capital on 7 of the 9 factors compared between the two stocks.

About MDB Capital

MDB Capital Holdings, LLC, through its subsidiaries, primarily operates as a broker-dealer. The company operates through two segments, Broker Dealer & Intellectual Property Service, and Technology Development. The Broker Dealer & Intellectual Property Service segment operates as a full-service broker dealer that focuses on conducting private and public securities offerings, as well as providing research services for investment banking due diligence. The Technology Development segment engages in the synthetic biology technology development business. The company was founded in 1997 and is based in Addison, Texas.

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.