Critical Contrast: Qudian (NYSE:QD) and Mercurity Fintech (NASDAQ:MFH)

Mercurity Fintech (NASDAQ:MFH) and Qudian (NYSE:QD) are both small-cap business services companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, dividends, profitability, earnings, analyst recommendations, institutional ownership and valuation.

Profitability

This table compares Mercurity Fintech and Qudian’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mercurity Fintech	N/A	N/A	N/A
Qudian	-278.52%	-3.78%	-3.56%

Analyst Recommendations

This is a summary of recent ratings and price targets for Mercurity Fintech and Qudian, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mercurity Fintech	0	0	0	0	N/A
Qudian	0	0	0	0	N/A

Earnings and Valuation

This table compares Mercurity Fintech and Qudian’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mercurity Fintech	$445,928.00	185.80	-$9.36 million	N/A	N/A
Qudian	$17.79 million	21.14	$5.51 million	($0.30)	-6.25

Qudian has higher revenue and earnings than Mercurity Fintech.

Insider & Institutional Ownership

30.8% of Mercurity Fintech shares are owned by institutional investors. Comparatively, 8.1% of Qudian shares are owned by institutional investors. 62.8% of Mercurity Fintech shares are owned by company insiders. Comparatively, 25.7% of Qudian shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Risk & Volatility

Mercurity Fintech has a beta of 1.93, meaning that its share price is 93% more volatile than the S&P 500. Comparatively, Qudian has a beta of 0.63, meaning that its share price is 37% less volatile than the S&P 500.

Summary

Mercurity Fintech beats Qudian on 7 of the 9 factors compared between the two stocks.

About Mercurity Fintech

Mercurity Fintech Holding Inc. operates as a fintech company powered by blockchain. The company provides digital asset trading infrastructure solutions based on internet and blockchain technologies for cryptocurrency traders; and asset digitalization platform, which offers blockchain-based digitalization solutions for traditional assets, such as fiat currencies, bonds, and precious metals. It also offers cryptocurrency mining services that provides computing power to the mining pool; and digital consultation services, such as digital payment solutions, asset management, and online and traditional brokerage services. The company was formerly known as JMU Limited and changed its name to Mercurity Fintech Holding Inc. in April 2020. Mercurity Fintech Holding Inc. was incorporated in 2011 and is headquartered in New York, New York.

About Qudian

Qudian Inc. operates as a consumer-oriented technology company in the People's Republic of China. The company engages in the operation of online platforms to provide small consumer credit products. It also provides technology development and services; research and development services; and delivery services. The company was founded in 2014 and is headquartered in Xiamen, the People's Republic of China.