Fincera (YUANF) & KAR Auction Services (KAR) Head to Head Survey

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KAR Auction Services (NYSE:KAR) and Fincera (OTCMKTS:YUANF) are both retail/wholesale companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, institutional ownership, valuation, risk, analyst recommendations, earnings and profitability.

Insider & Institutional Ownership

97.3% of KAR Auction Services shares are held by institutional investors. 1.3% of KAR Auction Services shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares KAR Auction Services and Fincera’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
KAR Auction Services 11.62% 26.50% 5.60%
Fincera 26.44% 176.83% 5.59%

Earnings & Valuation

This table compares KAR Auction Services and Fincera’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
KAR Auction Services $3.46 billion 1.90 $362.00 million $2.50 19.50
Fincera $156.69 million 4.99 -$1.28 million N/A N/A

KAR Auction Services has higher revenue and earnings than Fincera.

Volatility & Risk

KAR Auction Services has a beta of 1.22, indicating that its share price is 22% more volatile than the S&P 500. Comparatively, Fincera has a beta of -0.02, indicating that its share price is 102% less volatile than the S&P 500.

Dividends

KAR Auction Services pays an annual dividend of $1.40 per share and has a dividend yield of 2.9%. Fincera does not pay a dividend. KAR Auction Services pays out 56.0% of its earnings in the form of a dividend. KAR Auction Services has raised its dividend for 6 consecutive years.

Analyst Ratings

This is a summary of recent ratings for KAR Auction Services and Fincera, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
KAR Auction Services 0 3 5 0 2.63
Fincera 0 0 0 0 N/A

KAR Auction Services presently has a consensus price target of $64.67, indicating a potential upside of 32.62%. Given KAR Auction Services’ higher probable upside, analysts plainly believe KAR Auction Services is more favorable than Fincera.

Summary

KAR Auction Services beats Fincera on 10 of the 14 factors compared between the two stocks.

About KAR Auction Services

KAR Auction Services, Inc., together with its subsidiaries, provides used car auction and salvage auction services in the United States, Canada, Mexico, and the United Kingdom. The company operates through three segments: ADESA Auctions, IAA, and AFC. The ADESA Auctions segment offers whole car auctions and related services to the vehicle remarketing industry through online auctions and auction facilities. It also provides value-added services, such as auction related, transportation, reconditioning, inspection, title and repossession administration and remarketing, vehicle research, and analytical services, as well as data. This segment sells its products and services through vehicle manufacturers, fleet companies, rental car companies, finance companies, and others. The IAA segment offers various loss solutions and salvage vehicle auction services that facilitate the remarketing of vehicles for a range of sellers, including insurance companies, dealerships, rental car companies, fleet lease companies, and charitable organizations. This segment also provides catastrophe, vehicle inspection center, and transportation and towing services. The AFC segment offers floorplan financing, a short-term inventory-secured financing, to independent used vehicle dealers. As of December 31, 2017, the company had a network of 75 whole car auction locations and 175 salvage auction sites. The company was formerly known as KAR Holdings, Inc. and changed its name to KAR Auction Services, Inc. in November 2009. KAR Auction Services, Inc. was founded in 2006 and is headquartered in Carmel, Indiana.

About Fincera

Fincera Inc. focuses on providing online lending and e-commerce services for small and medium-sized businesses (SMBs) and individuals in China. The company operates in two segments, Internet-Based Financial and E-Commerce Services, and Property Lease and Management. The company's financial services platforms include CeraPay, a revolving credit product that processes and settles transactions between its borrowers and merchants; and CeraVest, a peer-to-peer lending platform that provides short-term financing primarily to SMBs. Its e-commerce products comprise TruShip, an online e-commerce platform for trucking industry merchants; AutoChekk, an e-commerce platform for the passenger vehicle industry; and PingPing, an e-commerce platform for small businesses to establish an online presence. The company also owns and leases office space; and operates and manages Shijiazhuang Hilton hotel in the Kaiyuan Finance Center building. The company was formerly known as AutoChina International Limited and changed its name to Fincera Inc. in July 2015. Fincera Inc. was founded in 1994 and is headquartered in Shijiazhuang, the People's Republic of China. Fincera Inc. is a subsidiary of Honest Best International Ltd.

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