Vinco Ventures vs. Jiayin Group: Which NFT Stock is a Better Investment?

Based in Shanghai, the People's Republic of China, Jiayin Group Inc. (JFIN) is an online individual finance platform that connects individual investors and individual borrowers. It operates a secure and open platform that facilitates transparent, secure, and fast connections between investors and borrowers. On the other hand, Vinco Ventures, Inc. (BBIG) operates as a consumer product research and development, manufacturing, sales, and fulfillment company. It offers toys, plush, homewares, and electronics to retailers, distributors, and manufacturers through e-commerce channels.

Even though many investors are skeptical about the actual value of non-fungible tokens (NFTs), monthly sales on OpenSea reached $3.4 billion in August, an all-time high, according to data from Dune Analytics. Last month, the clip art of rock sold for 400 ether. While NFT trading volume has declined this month, increasing technological advances in the crypto space and growing interest in digital collectibles should drive the NFT market’s growth. So, NFT stocks JFIN and BBIG should benefit.

BBIG has gained 207.1% over the past month, while JFIN has returned 4.2%. Also, BBIG’s 344% gain over the past year is significantly higher than JFIN’s 24% return. Moreover, BBIG is the clear winner with a 471.3% gain versus JFIN’s 2.2% in terms of the past nine months’ performance.

But which of these two stocks is a better buy now? Let’s find out.

Latest Developments

On August 25, 2021, Mr. Yan Dinggui, JFIN's Founder, Director and CEO, said, “Looking ahead, we will continue broadening partnerships with more funding partners to diversify our funding resources while maintaining excellence in our risk management. We are confident our robust growth will sustain and positive trajectory in both loan growth, and asset quality will continue into the future.”

BBIG announced its subsidiary Emmersive Entertainment's first-ever music streaming platform on August 4, 2021. The company’s CSO Brian McFadden said, "The launch of the Emmersive Platform, led by the limited-edition release of Tory Lanez's latest album, is revolutionary. When combining this with the traffic that can be generated through Lomotif, we expect to build one of the largest NFT platforms in the music business."

Recent Financial Results

JFIN’s net revenue increased 100.9% year-over-year to $76.23 million for the fiscal second quarter that ended June 30, 2021. Its operating income grew 211.7% year-over-year to $23.17 million, while its net income increased 208.5% year-over-year to $19.64 million. Also, its EPS came in at $0.09, up 210.5% year-over-year.

BBIG’s net revenue decreased 48% year-over-year to $2.69 million for the fiscal second quarter that ended June 30, 2021. Its operating loss grew 311.2% year-over-year to $4.97 million, while its net loss increased 11,207% year-over-year to $183.67 million. Also, its loss per share came in at $5.13, up 2,750% year-over-year.

Profitability

JFIN’s trailing-12-month revenue of $244.21 million is significantly higher than BBIG’s $13.91 million. Moreover, JFIN is more profitable with a gross profit margin of 82.46% compared to BBIG’s 32.36%.

Furthermore, JFIN’s ROA of 41.17% compares favorably to BBIG’s negative value.

Valuation

In terms of trailing-12-month P/S, BBIG is currently trading at 11.16x, 1,261% higher than JFIN’s 0.82x. Moreover, BBIG’s trailing-12-month EV/S of 42.94x is 5,550% higher than JFIN’s 0.76x.

So, JFIN is the more affordable stock.

POWR Ratings

JFIN has an overall grade of A, which equates to a Strong Buy rating in our proprietary POWR Ratings system. On the other hand, BBIG has an overall grade of F, which translates to a Strong Sell rating. The POWR Ratings are calculated considering 118 different factors, with each factor weighted to an optimal degree.

JFIN has a grade of A for Sentiment, in sync with favorable analyst sentiment. On the other hand, BBIG has a D grade for Sentiment, consistent with unfavorable analyst sentiment.

JFIN has a B grade for Value, consistent with its trailing-12-month EV/S of 0.76x, 76.3% lower than the industry average of 3.21x. However, BBIG has an F grade for Value, in sync with its trailing-12-month EV/S of 42.94x, 2,623.4% higher than the industry average of 1.58x.

Moreover, JFIN has a grade of B for Quality. This is justified given JFIN's 2.23% trailing-12-month asset turnover ratio, 1,023.6% higher than the industry average of 0.20%. On the other hand, BBIG has a Quality grade of D, in sync with its 0.19% trailing-12-month asset turnover ratio, 82.1% lower than the industry average of 1.05%.

Of the 103 stocks in the Financial Services (Enterprise) industry, JFIN is ranked #5. However, BBIG is ranked #70 of 71 stocks in the Consumer Goods industry.

Beyond what I’ve stated above, we have also rated the stocks for Growth, Stability, and Momentum. Click here to view all of JFIN’s grades. Also, get all of BBIG grades here.

The Winner

With increasing technological advances in the cryptocurrency space and growing interest in digital collectibles, the NFT market is expected to continue growing in the upcoming months. While both JFIN and BBIG should benefit from this trend, it is better to bet on JFIN now because of its better financials, lower valuation, and higher profitability.

Our research shows that odds of success increase when one invests in stocks with an Overall Rating of Strong Buy or Buy. View all the other top-rated stocks in the Financial Services (Enterprise) industry here. Also, click here to access all the top-rated stocks in the Consumer Goods industry.

JFIN shares were trading at $3.57 per share on Monday afternoon, down $0.15 (-4.03%). Year-to-date, JFIN has gained 17.05%, versus a 16.25% rise in the benchmark S&P 500 index during the same period.

Nimesh Jaiswal's fervent interest in analyzing and interpreting financial data led him to a career as a financial analyst and journalist. The importance of financial statements in driving a stock’s price is the key approach that he follows while advising investors in his articles.

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