Critical Analysis: SBI (OTCMKTS:SBHGF) versus Mercurity Fintech (NASDAQ:MFH)

SBI (OTCMKTS:SBHGF) and Mercurity Fintech (NASDAQ:MFH) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, dividends, valuation, risk, profitability and institutional ownership.

Institutional and Insider Ownership

30.8% of Mercurity Fintech shares are held by institutional investors. 62.8% of Mercurity Fintech shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Risk and Volatility

SBI has a beta of 0.94, meaning that its stock price is 6% less volatile than the S&P 500. Comparatively, Mercurity Fintech has a beta of 1.92, meaning that its stock price is 92% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and target prices for SBI and Mercurity Fintech, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SBI	0	0	0	1	4.00
Mercurity Fintech	0	0	0	0	N/A

Valuation & Earnings

This table compares SBI and Mercurity Fintech”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SBI	$8.39 billion	0.82	$601.98 million	$1.86	12.19
Mercurity Fintech	$445,928.00	186.85	-$9.36 million	N/A	N/A

SBI has higher revenue and earnings than Mercurity Fintech.

Profitability

This table compares SBI and Mercurity Fintech’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SBI	6.79%	4.53%	0.32%
Mercurity Fintech	N/A	N/A	N/A

Summary

SBI beats Mercurity Fintech on 6 of the 10 factors compared between the two stocks.

About SBI

SBI Holdings, Inc. engages in the online securities and investment businesses. It operates through five business segments: Financial Services Business, Asset Management Business, Investment Business, Crypto-Asset Business, and Non-financial Business segments. The Financial Services Business segment consists of a range of finance-related business, including securities brokerage business; banking services business; and life, property, and casualty insurance business. The Asset Management Business segment includes setting, solicitation, and management of investment trust; investment advice; and financial products information. The Investment Business segment includes fund management and investment in Internet technology, fintech, blockchain, finance, and biotechnology-related venture companies; private equity; and funds management businesses. The Crypto-asset Business segment provides crypto-asset exchange and trading services. The Non-Financial Business segment consists of biotechnology; development and distribution of pharmaceutical products, health foods, and cosmetics with 5-aminolevulinic acid; research and development of antibody drugs and nucleic acid medicine in the field of cancer and immunology; the digitization of medical and health information; provision of solutions and services that promote the use of medical big data, medical finance; business working on advanced fields related to Web 3.0; and renewable energy business. The company is also involved in the real estate secured loans, online mobile game, and e-sports related businesses. In addition, it operates and develops cybersecurity systems; exports used cars; offers back-office support services; and develops, operates, manages, and invests in real estate properties. The company was formerly known as Softbank Investment Corporation and changed its name to SBI Holdings, Inc. in July 2005. SBI Holdings, Inc. was incorporated in 1999 and is headquartered in Tokyo, Japan.

About Mercurity Fintech

Mercurity Fintech Holding Inc. operates as a fintech company powered by blockchain. The company provides digital asset trading infrastructure solutions based on internet and blockchain technologies for cryptocurrency traders; and asset digitalization platform, which offers blockchain-based digitalization solutions for traditional assets, such as fiat currencies, bonds, and precious metals. It also offers cryptocurrency mining services that provides computing power to the mining pool; and digital consultation services, such as digital payment solutions, asset management, and online and traditional brokerage services. The company was formerly known as JMU Limited and changed its name to Mercurity Fintech Holding Inc. in April 2020. Mercurity Fintech Holding Inc. was incorporated in 2011 and is headquartered in New York, New York.