Lufax (NYSE:LU) & Mercurity Fintech (NASDAQ:MFH) Critical Comparison

Mercurity Fintech (NASDAQ:MFH) and Lufax (NYSE:LU) are both business services companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, valuation, risk, dividends, analyst recommendations, institutional ownership and earnings.

Profitability

This table compares Mercurity Fintech and Lufax’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mercurity Fintech	N/A	N/A	N/A
Lufax	-12.75%	-3.63%	-1.45%

Analyst Recommendations

This is a breakdown of current ratings and target prices for Mercurity Fintech and Lufax, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mercurity Fintech	0	0	0	0	0.00
Lufax	0	3	0	0	2.00

Lufax has a consensus target price of $3.58, suggesting a potential upside of 48.07%. Given Lufax’s stronger consensus rating and higher probable upside, analysts plainly believe Lufax is more favorable than Mercurity Fintech.

Insider & Institutional Ownership

30.8% of Mercurity Fintech shares are held by institutional investors. Comparatively, 69.1% of Lufax shares are held by institutional investors. 62.8% of Mercurity Fintech shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Volatility and Risk

Mercurity Fintech has a beta of 3.42, suggesting that its stock price is 242% more volatile than the S&P 500. Comparatively, Lufax has a beta of 0.85, suggesting that its stock price is 15% less volatile than the S&P 500.

Earnings and Valuation

This table compares Mercurity Fintech and Lufax”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mercurity Fintech	$716,863.00	577.87	-$9.36 million	N/A	N/A
Lufax	$20.29 billion	0.10	$125.31 million	($0.77)	-3.14

Lufax has higher revenue and earnings than Mercurity Fintech.

Summary

Mercurity Fintech beats Lufax on 6 of the 11 factors compared between the two stocks.

About Mercurity Fintech

Mercurity Fintech Holding Inc. operates as a fintech company powered by blockchain. The company provides digital asset trading infrastructure solutions based on internet and blockchain technologies for cryptocurrency traders; and asset digitalization platform, which offers blockchain-based digitalization solutions for traditional assets, such as fiat currencies, bonds, and precious metals. It also offers cryptocurrency mining services that provides computing power to the mining pool; and digital consultation services, such as digital payment solutions, asset management, and online and traditional brokerage services. The company was formerly known as JMU Limited and changed its name to Mercurity Fintech Holding Inc. in April 2020. Mercurity Fintech Holding Inc. was incorporated in 2011 and is headquartered in New York, New York.

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.