Financial Analysis: CNFinance (NYSE:CNF) vs. Argo Blockchain (NASDAQ:ARBK)

Argo Blockchain (NASDAQ:ARBK) and CNFinance (NYSE:CNF) are both small-cap finance companies, but which is the better stock? We will contrast the two companies based on the strength of their risk, dividends, valuation, institutional ownership, profitability, earnings and analyst recommendations.

Profitability

This table compares Argo Blockchain and CNFinance’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Argo Blockchain	-92.08%	-4,172.69%	-59.43%
CNFinance	N/A	N/A	N/A

Insider and Institutional Ownership

2.4% of Argo Blockchain shares are owned by institutional investors. 25.8% of CNFinance shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Argo Blockchain and CNFinance”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Argo Blockchain	$60.03 million	0.68	-$35.03 million	($0.72)	-0.89
CNFinance	$1.11 billion	0.06	$23.26 million	$0.31	3.29

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

Risk & Volatility

Argo Blockchain has a beta of 1.81, meaning that its stock price is 81% more volatile than the S&P 500. Comparatively, CNFinance has a beta of -0.01, meaning that its stock price is 101% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Argo Blockchain and CNFinance, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Argo Blockchain	0	2	0	0	2.00
CNFinance	0	0	0	0	0.00

Argo Blockchain currently has a consensus target price of $1.45, indicating a potential upside of 125.68%. Given Argo Blockchain’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Argo Blockchain is more favorable than CNFinance.

Summary

CNFinance beats Argo Blockchain on 8 of the 13 factors compared between the two stocks.

About Argo Blockchain

Argo Blockchain plc, together with its subsidiaries, engages in the bitcoin and other cryptocurrencies mining business worldwide. It engages in mining purpose-built computers for complex cryptographic algorithms. The company was formerly known as GoSun Blockchain Limited and changed its name to Argo Blockchain plc in December 2017. Argo Blockchain plc was incorporated in 2017 and is based in London, the United Kingdom.

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.