Lufax (NYSE:LU) and AMTD Digital (NYSE:HKD) Financial Comparison

AMTD Digital (NYSE:HKD) and Lufax (NYSE:LU) are both small-cap business services companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, risk, valuation, profitability, institutional ownership and earnings.

Profitability

This table compares AMTD Digital and Lufax’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AMTD Digital	N/A	N/A	N/A
Lufax	-2.17%	-0.72%	-0.27%

Valuation & Earnings

This table compares AMTD Digital and Lufax’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AMTD Digital	$33.07 million	21.13	$41.74 million	N/A	N/A
Lufax	$4.82 billion	0.26	$125.31 million	($0.14)	-15.64

Lufax has higher revenue and earnings than AMTD Digital.

Institutional & Insider Ownership

5.8% of AMTD Digital shares are held by institutional investors. Comparatively, 69.1% of Lufax shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings for AMTD Digital and Lufax, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AMTD Digital	0	0	0	0	N/A
Lufax	1	3	0	0	1.75

Lufax has a consensus target price of $5.68, indicating a potential upside of 159.36%. Given Lufax’s higher probable upside, analysts plainly believe Lufax is more favorable than AMTD Digital.

Volatility & Risk

AMTD Digital has a beta of 2.45, indicating that its share price is 145% more volatile than the S&P 500. Comparatively, Lufax has a beta of 0.82, indicating that its share price is 18% less volatile than the S&P 500.

Summary

AMTD Digital beats Lufax on 5 of the 9 factors compared between the two stocks.

About AMTD Digital

AMTD Digital Inc., through its subsidiaries, designs and develops a digital platform to provide financial, media, content and marketing, and investment solutions in Asia. The company operates through Digital Solutions ServicesFinancial Services, Digital Solutions ServicesNon Financial Services, Digital Media, Content, and Marketing Services, and Digital Investments segments. It offers deposit, personal loan, credit card, fund transfer, cross border remittance, insurance, and other payment services. In addition, the company operates SpiderNet ecosystem, a platform to enhance their investor communication, investor relations, and corporate communication to enhance their valuation. Further, it offers movies, podcasts, webinars, and videos through online media platforms. Additionally, the company invests in hotel related activities. AMTD Digital Inc. was incorporated in 2019 and is based in Paris, France. AMTD Digital Inc. operates as a subsidiary of AMTD IDEA Group.

About Lufax

Lufax Holding Ltd operates as a financial service empowering institution for small and micro businesses in China. The company offers loan products, including general unsecured loans and secured loans, as well as consumer finance loans. It also provides wealth management products, such as asset management plans, mutual fund products, private investment fund products, and trust products. The company was founded in 2005 and is headquartered in Shanghai, China.