Head-To-Head Survey: Yiren Digital (NYSE:YRD) vs. SHF (NASDAQ:SHFS)

SHF (NASDAQ:SHFS – Get Rating) and Yiren Digital (NYSE:YRD – Get Rating) are both small-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, dividends, analyst recommendations, risk, profitability, institutional ownership and earnings.

Analyst Ratings

This is a breakdown of current recommendations and price targets for SHF and Yiren Digital, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SHF	0	0	1	0	3.00
Yiren Digital	0	0	0	0	N/A

SHF currently has a consensus target price of $1.50, suggesting a potential upside of 292.36%. Given SHF’s higher probable upside, research analysts clearly believe SHF is more favorable than Yiren Digital.

Volatility and Risk

SHF has a beta of 0.16, suggesting that its share price is 84% less volatile than the S&P 500. Comparatively, Yiren Digital has a beta of 0.68, suggesting that its share price is 32% less volatile than the S&P 500.

Profitability

This table compares SHF and Yiren Digital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SHF	N/A	6.94%	1.88%
Yiren Digital	N/A	N/A	N/A

Insider and Institutional Ownership

82.0% of SHF shares are owned by institutional investors. Comparatively, 1.5% of Yiren Digital shares are owned by institutional investors. 17.7% of SHF shares are owned by insiders. Comparatively, 42.2% of Yiren Digital shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares SHF and Yiren Digital’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SHF	$9.48 million	1.66	-$35.13 million	N/A	N/A
Yiren Digital	$497.97 million	0.41	$173.24 million	N/A	N/A

Yiren Digital has higher revenue and earnings than SHF.

Summary

SHF beats Yiren Digital on 6 of the 10 factors compared between the two stocks.

About SHF

(Get Rating)

SHF Holdings, Inc., through its subsidiaries, provides access to banking, lending, and other financial services to financial institutions serving the cannabis industry. The company, through its proprietary platform, offers access to business checking and savings accounts, cash management accounts, savings and investment options, commercial lending, courier services, remote deposit services, automated clearing house payments and origination, and wire payments. Its services allow cannabis related businesses to obtain services from financial institutions that allow them to run their business with enhanced financial insight into their business and access to resources. The company was founded in 2015 and is based in Arvada, Colorado.

About Yiren Digital

(Get Rating)

Yiren Digital Ltd. engages in the easy access to affordable credit and investors with attractive investment opportunities through its online marketplace. It operates through Yiren Wealth and Yiren Credit segments. The Yiren Wealth segment specifically targets the mass affluent investors and provides them with one-stop asset allocation-based wealth management solutions. The Yiren Credit segment has the capability to provide individual borrowers and small business owners with a full spectrum of online & offline, multi-channel loan products funded by investors. The company was founded by Ning Tang in March 2012 and is headquartered in Beijing, China.