LexinFintech (NASDAQ:LX – Get Free Report) and BitFuFu (NASDAQ:FUFU – Get Free Report) are both small-cap finance companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, risk, dividends, valuation, analyst recommendations, profitability and earnings.
Valuation & Earnings
This table compares LexinFintech and BitFuFu”s revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
LexinFintech | $1.84 billion | 0.73 | $150.14 million | $0.63 | 13.02 |
BitFuFu | $284.11 million | 2.80 | $10.49 million | N/A | N/A |
LexinFintech has higher revenue and earnings than BitFuFu.
Analyst Recommendations
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
LexinFintech | 0 | 0 | 1 | 0 | 3.00 |
BitFuFu | 0 | 0 | 1 | 0 | 3.00 |
BitFuFu has a consensus target price of $7.00, suggesting a potential upside of 43.44%. Given BitFuFu’s higher possible upside, analysts clearly believe BitFuFu is more favorable than LexinFintech.
Profitability
This table compares LexinFintech and BitFuFu’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
LexinFintech | 5.34% | 7.47% | 3.26% |
BitFuFu | 8.17% | 40.15% | 13.55% |
Insider & Institutional Ownership
37.3% of BitFuFu shares are owned by institutional investors. 27.8% of LexinFintech shares are owned by insiders. Comparatively, 35.0% of BitFuFu shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Risk & Volatility
LexinFintech has a beta of 0.66, indicating that its stock price is 34% less volatile than the S&P 500. Comparatively, BitFuFu has a beta of 0.24, indicating that its stock price is 76% less volatile than the S&P 500.
Summary
BitFuFu beats LexinFintech on 7 of the 10 factors compared between the two stocks.
About LexinFintech
LexinFintech Holdings Ltd., through its subsidiaries, provides online consumer finance services in the People's Republic of China. The company operates Fenqile.com, an online consumption and consumer finance platform that offers installment purchase and personal installment loans, as well as online direct sales with installment payment terms; and Le Hua Card, a scenario-based lending. It also provides technology-driven platform services for financial institution customers and partners to increase revenues, manage financial risks, enhance operating efficiency and service quality, enhance collections, and reduce overall costs; Maiya application, a location-based services shopping experience with buy-now and pay-later options; and Juzi Licai, an online investment platform. In addition, the company offers technical support and consulting, software development, financing guarantee, and financial technology services. The company was formerly known as Staging Finance Holding Ltd. and changed its name to LexinFintech Holdings Ltd. in March 2017. LexinFintech Holdings Ltd. was founded in 2013 and is headquartered in Shenzhen, the People's Republic of China.
About BitFuFu
BitFuFu Inc. provides digital asset mining and cloud-mining services in Singapore. It also offers miner rental, and miner hosting and sales services to institutional customers and individual digital asset enthusiasts. The company is based in Singapore, Singapore.
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