PHH (PHH) and China Lending (CLDC) Critical Survey

PHH (NYSE:PHH) and China Lending (NASDAQ:CLDC) are both small-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, profitability, dividends, valuation, analyst recommendations, risk and earnings.

Analyst Recommendations

This is a summary of recent recommendations and price targets for PHH and China Lending, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PHH 0 1 0 0 2.00
China Lending 0 0 0 0 N/A

PHH presently has a consensus price target of $12.00, suggesting a potential upside of 9.09%. Given PHH’s higher probable upside, equities analysts clearly believe PHH is more favorable than China Lending.

Risk and Volatility

PHH has a beta of 1.3, meaning that its stock price is 30% more volatile than the S&P 500. Comparatively, China Lending has a beta of -1.04, meaning that its stock price is 204% less volatile than the S&P 500.

Profitability

This table compares PHH and China Lending’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
PHH -53.65% -32.20% -9.84%
China Lending N/A N/A N/A

Earnings & Valuation

This table compares PHH and China Lending’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
PHH $456.00 million 0.79 -$217.00 million N/A N/A
China Lending $16.53 million 1.44 -$54.78 million N/A N/A

China Lending has lower revenue, but higher earnings than PHH.

Institutional and Insider Ownership

82.6% of PHH shares are held by institutional investors. Comparatively, 0.1% of China Lending shares are held by institutional investors. 2.5% of PHH shares are held by insiders. Comparatively, 2.2% of China Lending shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

About PHH

PHH Corporation, through its PHH Mortgage Corporation, operates as a sub servicer of residential mortgages in the United States. The company operates through two segments, Mortgage Production and Mortgage Servicing. It provides servicing and portfolio retention solutions to investors of mortgage servicing rights, financial and wealth management institutions, regional and community banks, and credit unions. The company was founded in 1946 and is headquartered in Mount Laurel, New Jersey.

About China Lending

China Lending Corporation, through its subsidiaries, provides direct lending services in the Xinjiang Uyghur Autonomous Region of the People's Republic of China. It offers loans to micro, small, and medium sized enterprises; and sole proprietors. The company also provides financial consulting services. It serves customers in commerce and service, energy and mining, real estate, agriculture and husbandry, supply chain financing, manufacturing, consumer credit, and other industries. China Lending Corporation was founded in 2009 and is based in Urumqi, the People's Republic of China.

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