Financial Contrast: Cosmos Group (OTCMKTS:COSG) vs. Atlanticus (NASDAQ:ATLC)

Cosmos Group (OTCMKTS:COSG) and Atlanticus (NASDAQ:ATLC) are both small-cap financial services companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, dividends, analyst recommendations, institutional ownership, earnings, risk and profitability.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Cosmos Group and Atlanticus, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cosmos Group	0	0	0	0	N/A
Atlanticus	0	1	2	0	2.67

Atlanticus has a consensus target price of $41.00, indicating a potential upside of 9.65%. Given Atlanticus’ higher probable upside, analysts clearly believe Atlanticus is more favorable than Cosmos Group.

Valuation and Earnings

This table compares Cosmos Group and Atlanticus”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cosmos Group	$620,000.00	0.74	-$77.34 million	N/A	N/A
Atlanticus	$262.48 million	2.11	$102.85 million	$4.24	8.82

Atlanticus has higher revenue and earnings than Cosmos Group.

Profitability

This table compares Cosmos Group and Atlanticus’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cosmos Group	N/A	N/A	-79.06%
Atlanticus	8.42%	25.32%	3.73%

Risk & Volatility

Cosmos Group has a beta of 1.54, meaning that its share price is 54% more volatile than the S&P 500. Comparatively, Atlanticus has a beta of 1.92, meaning that its share price is 92% more volatile than the S&P 500.

Institutional and Insider Ownership

14.1% of Atlanticus shares are held by institutional investors. 0.4% of Cosmos Group shares are held by company insiders. Comparatively, 51.8% of Atlanticus shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Atlanticus beats Cosmos Group on 11 of the 11 factors compared between the two stocks.

About Cosmos Group

Cosmos Group Holdings Inc. focuses on the physical artworks and collectibles business in Hong Kong and internationally. It operates online platform to sell and distribute the arts and collectibles to end-users with the use of blockchain technologies and minting tokens. The company is based in Singapore.

About Atlanticus

Atlanticus Holdings Corporation, a financial technology company, provides credit and related financial services and products to customers the United States. It operates in two segments, Credit as a Service, and Auto Finance. The Credit as a Service segment originates a range of consumer loan products, such as private label and general purpose credit cards originated by lenders through various channels, including retail and healthcare, direct mail solicitation, digital marketing, and partnerships with third parties; and offers credit to their customers for the purchase of various goods and services, including consumer electronics, furniture, elective medical procedures, healthcare, and home-improvements by partnering with retailers, healthcare providers, and other service providers. This segment also offers loan servicing, such as risk management and customer service outsourcing for third parties; and engages in testing and investment activities in consumer finance technology platforms. The Auto Finance segment purchases and/or services loans secured by automobiles from or for a pre-qualified network of independent automotive dealers and automotive finance companies in the buy-here, pay-here, and used car business. This segment also provides floor plan financing and installment lending products. It also invests in and services portfolios of credit card receivables. The company was founded in 1996 and is headquartered in Atlanta, Georgia.