Contrasting CNFinance (NYSE:CNF) and Argo Blockchain (NASDAQ:ARBK)

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

Earnings and Valuation

This table compares CNFinance and Argo Blockchain”s top-line revenue, earnings per share and valuation.

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

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 and Volatility

CNFinance has a beta of -0.03, suggesting that its share price is 103% less volatile than the S&P 500. Comparatively, Argo Blockchain has a beta of 1.81, suggesting that its share price is 81% more volatile than the S&P 500.

Insider and Institutional Ownership

2.4% of Argo Blockchain shares are owned by institutional investors. 25.8% of CNFinance shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

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

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

Analyst Recommendations

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

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

Argo Blockchain 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, analysts clearly 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 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.

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.