9F (NASDAQ: JFU – Get a rating) and Lufax (NYSE: LU – Get a rating) are both finance companies, but which is the better stock? We’ll compare the two companies based on valuation strength, earnings, dividends, risk, profitability, analyst recommendations and institutional ownership.
Profitability
This table compares the net margins, return on equity and return on assets of 9F and Lufax.
| Net margins | Return on equity | return on assets | |
| 9F | N / A | N / A | N / A |
| Lufax | 27.08% | 18.93% | 5.45% |
Analyst Recommendations
This is a breakdown of recent recommendations for 9F and Lufax, as reported by MarketBeat.com.
| Sales Ratings | Hold odds | Buy reviews | Strong buy odds | Rating | |
| 9F | 0 | 0 | 0 | 0 | N / A |
| Lufax | 0 | 3 | 2 | 0 | 2.40 |
Lufax has a consensus target price of $9.76, indicating a potential upside of 78.75%. Given Lufax’s possible higher upside, analysts clearly believe that Lufax is more favorable than 9F.
Institutional and insider ownership
0.6% of 9F shares are held by institutional investors. Comparatively, 24.3% of Lufax shares are held by institutional investors. Strong institutional ownership indicates that large fund managers, hedge funds, and endowments believe a stock will outperform the market over the long term.
Benefits and evaluation
This table compares the revenue, earnings per share and valuation of 9F and Lufax.
| Gross revenue | Price/sales ratio | Net revenue | Earnings per share | Price/earnings ratio | |
| 9F | $192.49 million | 0.92 | -$346.19 million | N / A | N / A |
| Lufax | $9.70 billion | 1.39 | $2.61 billion | $1.04 | 5.25 |
Lufax has higher revenue and profit than 9F.
Volatility and risk
9F has a beta of -0.6, indicating its stock price is 160% less volatile than the S&P 500. In comparison, Lufax has a beta of 0.3, indicating its stock price is 70% less volatile than the S&P 500.
Summary
Lufax beats 9F on 10 of the 10 factors compared between the two stocks.
About 9F (Get a rating)
9F Inc., together with its subsidiaries, operates a digital financial account platform that integrates and personalizes financial services in the People’s Republic of China. Its products include digital financial accounts that offer online lending, wealth management and payment facilitation services; revolving and non-revolving loan products to borrowers, as well as referral services to institutional funding partners; and a suite of online wealth management products, such as fixed income, stocks, insurance, bank wealth management products and mutual funds for investors on various platforms including Wukong Licai, 9F Wallet and 9F Puhui. The Company also provides payment facilitation services and other products and services that help users pay credit card bills and household bills including utility bills; and other value-added services consisting of credit history research, debt consolidation and user referral services. It provides its services through partner borrowers, investors, financial institutions and merchants. The company was formerly known as JIUFU Financial Technology Service Limited and changed its name to 9F Inc. in June 2014. 9F Inc. was founded in 2006 and is headquartered in Beijing, People’s Republic of China.
About Lufax (Get a rating)
Lufax Holding Ltd operates a personal financial services technology platform in China. It offers loan products, including unsecured loans and secured loans, as well as consumer loans. The company also provides wealth management platforms, such as Lufax (Lu.com), Lu International (Singapore) and Lu International (Hong Kong) to middle class and affluent investors to invest in products and portfolios; retail credit facilitation services platform that provides small business owners with lending solutions; and technology empowerment solutions for financial institutions. Lufax Holding Ltd was incorporated in 2014 and is headquartered in Shanghai, China.
Get news and reviews for 9F Daily – Enter your email address below to receive a concise daily summary of breaking news and analyst ratings for 9F and related companies with MarketBeat.com’s free daily email newsletter.
Comments are closed.