Thread by @InvestiAnalyst

$FUTU vs $TIGR - MEGA THREAD Summary:

• What are the differences vs similarities btw both companies?
• 🚨Revenue Growth rates over 281% & 152% respectively
• What are the risks of Investing? Can we trust both?
• $FUTU Earnings Recap
• Are they worth it?

Biz Thread below👇

0/ Thread Overview [Skim to your sections]

1: Financials Overview
2-3: $FUTU vs $TIGR Competitive advantages
4-5: Financial Analysis Summary
5-6: Management Teams
8: The Risks to Weigh
10: Industry and market Opportunity

1/ Company Overview: Super easy, nothing much.

$FUTU & $TIGR - Platforms that enables buying & selling of equities.

* Additionally provide margin financing, ESOP management, IPO Services, Investment Banking.

* $FUTU has more of a growing Wealth Management biz

2/ $FUTU's Competitive Advantages:

i) First Mover Advantage
ii) Superior technical know-how around clearing & more vertically integrated
iii) Better Customer Demographics?
iv) Popular brand associated with providing market data
v) Bigger Social Media Platform for customer data

3/ $TIGR Competitive Advantages:

i) More International focus and brokerage licenses
ii) Diverse client base and exposure to more markets:
iii) Slightly diversified base of revenue streams than Futu - $TIGR relies less on commissions [76% vs 90% of Total Revs for Futu)

4/ $FUTU Q4/ 2020 Financial Results announced today.

Important metrics:
• Revenues: $153M [281% YoY]
• Total No of paying clients 516K [161% YoY]
• Registered clients 1.5M [98% YoY]
• Total Users 12M [58% YoY]
• Daily trading volumes [438% YoY]
• DART's - $462M [214%]

4i/ $FUTU vs. $TIGR Financial Summary: I put it together.

Big picture: Both companies are growing rapidly, but $FUTU edges out $TIGR on Top-line growth rates as well as bottom-line.

* Represents 3rd Qtr Revs/Incomplete data for $TIGR since they have less info.

5/ $FUTU Mgmt

• CEO/Founder: Leaf Hua Li owns 40% of shares
• Tencent $TCEHY – 30% ownership stake
- Recently announced another

*This is what convinced me about both companies - I'll imagine with such large ownership stakes, they can't afford to screw up? I tend to think so

6/ $TIGR Management & Leadership:

• CEO/Founder - Tianhua Wu owns 25% of shares
• Xaomi and Interactive Brokers own 20% ownership stake

Decent too & solid backers!

7/ Market Opportunity: Prize is big!

• According to Credit Suisse’s, China is now home to the second largest amount of aggregate household wealth in the world (after the US).
• Over a billion population especially considering the country is experiencing rapid economic growth

8/ Risks:
• The Chinese Gov't & geopolitics
• Competition from the biggest banks in China, including WeBull, eToro (SPAC'd today!- $FTCV & growing >137%)
• Race to Zero Commission erode Revs
• Is this a short-term trend in trading?
• Tigr had issues with the New Zealand Govt

9/ Macro factors/Tailwinds:

There is evidence suggesting money is flowing into

- Financials/Broker dealers
- $JPM Morgan says over $100B in 2021 are flowing into Emerging markets and Non-US stocks

These guys have been outperforming the markets!
Charts h/t @allstarcharts

10/ $FUTU vs $TIGR Comparisons:

For a full write-up & in-depth analysis of both companies - they can be found in my newsletter I sent out last week or read my Seeking Alpha later this week:

investianalystnewsletter.substack.com/p/futu-vs-tige…

11/11 $FUTU vs $TIGR End Summary

• Both are good companies growing rapidly in a BIG under-served market
• There are more similarities than differences
• Great customer demographics and fundamentals
• Both are Founder-Led with big ownership stakes
• Faced by risks

Thoughts?

$FUTU / $TIGR - I don't have a position yet - This is all for informational purposes for all my followers to assess both companies with great fundamentals and make a decision.

What do you guys think? What have I missed out?

Thanks for reading and share if helpful.