Analyzing Weidai (WEI) and Its Peers

Weidai (NYSE: WEI) is one of 38 public companies in the “Nondepository credit institutions” industry, but how does it contrast to its rivals? We will compare Weidai to similar companies based on the strength of its profitability, dividends, valuation, analyst recommendations, institutional ownership, earnings and risk.

Insider & Institutional Ownership

52.2% of shares of all “Nondepository credit institutions” companies are held by institutional investors. 18.1% of shares of all “Nondepository credit institutions” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Weidai and its rivals gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Weidai $535.80 million $71.75 million 9.59
Weidai Competitors $38.06 billion $835.75 million 16.21

Weidai’s rivals have higher revenue and earnings than Weidai. Weidai is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Analyst Ratings

This is a breakdown of current recommendations for Weidai and its rivals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Weidai 0 0 2 0 3.00
Weidai Competitors 236 908 1127 56 2.43

Weidai presently has a consensus price target of $13.00, indicating a potential upside of 23.22%. As a group, “Nondepository credit institutions” companies have a potential upside of 32.92%. Given Weidai’s rivals higher probable upside, analysts clearly believe Weidai has less favorable growth aspects than its rivals.

Profitability

This table compares Weidai and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Weidai N/A N/A N/A
Weidai Competitors 12.78% -52.33% -1.72%

Summary

Weidai rivals beat Weidai on 8 of the 12 factors compared.

About Weidai

Weidai Ltd., through its subsidiaries, provides auto-backed financing solutions in the People's Republic of China. Its auto-backed financing platform connects borrowers primarily mall and micro enterprise owners with online investors and institutional funding partners. The company was founded in 2011 and is headquartered in Hangzhou, the People's Republic of China.

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