Comparing Blucora (NASDAQ:BCOR) and Hexindai (NASDAQ:HX)

Blucora (NASDAQ:BCOR) and Hexindai (NASDAQ:HX) are both small-cap business services companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, risk, dividends, analyst recommendations, institutional ownership, profitability and earnings.

Profitability

This table compares Blucora and Hexindai’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Blucora 10.27% 14.94% 9.05%
Hexindai 9.02% 4.10% 3.40%

Risk & Volatility

Blucora has a beta of 0.58, suggesting that its share price is 42% less volatile than the S&P 500. Comparatively, Hexindai has a beta of 1, suggesting that its share price has a similar volatility profile to the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Blucora and Hexindai, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Blucora 0 0 2 0 3.00
Hexindai 0 0 0 0 N/A

Blucora presently has a consensus price target of $40.50, indicating a potential upside of 80.00%. Given Blucora’s higher possible upside, equities research analysts plainly believe Blucora is more favorable than Hexindai.

Earnings & Valuation

This table compares Blucora and Hexindai’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Blucora $560.46 million 1.96 $50.63 million $1.52 14.80
Hexindai $61.33 million 2.07 $5.53 million $0.10 24.20

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

Insider and Institutional Ownership

95.7% of Blucora shares are owned by institutional investors. Comparatively, 4.1% of Hexindai shares are owned by institutional investors. 3.4% of Blucora shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Blucora beats Hexindai on 10 of the 13 factors compared between the two stocks.

About Blucora

Blucora, Inc. provides technology-enabled financial solutions to consumers, small business owners, and tax professionals in the United States. The company operates through two segments, Wealth Management and Tax Preparation. The Wealth Management segment offers an integrated platform of brokerage, investment advisory, and insurance services to financial advisors. The Tax Preparation segment provides digital do-it-yourself tax preparation solutions for consumers and small business owners through TaxAct.com; and ancillary services, including refund payment transfer, audit defense, stored value cards, retirement investment accounts, tax preparation support services, data archive services, and e-filing services. This segment also offers professional tax preparer software. The company was formerly known as InfoSpace, Inc. and changed its name to Blucora, Inc. in June 2012. Blucora, Inc. was founded in 1996 and is headquartered in Irving, Texas.

About Hexindai

Hexindai Inc. operates a consumer lending marketplace that facilitates loans in China. It primarily focuses on facilitating medium-sized credit loans. The company provides borrowers a range of products based on customer segmentation data and tailored to the specific needs of the emerging middle class; and investors various types of investment products. The company was founded in 2013 and is headquartered in Beijing, China.

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