Comparing Lufax (NYSE:LU) & TeraWulf (NASDAQ:WULF)

Lufax (NYSE:LU) and TeraWulf (NASDAQ:WULF) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, dividends, earnings, risk, institutional ownership, profitability and analyst recommendations.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Lufax	-12.75%	-3.63%	-1.45%
TeraWulf	-41.88%	-15.91%	-11.67%

Volatility & Risk

Lufax has a beta of 0.84, indicating that its share price is 16% less volatile than the S&P 500. Comparatively, TeraWulf has a beta of 2.59, indicating that its share price is 159% more volatile than the S&P 500.

Insider and Institutional Ownership

69.1% of Lufax shares are held by institutional investors. Comparatively, 62.5% of TeraWulf shares are held by institutional investors. 24.9% of TeraWulf shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Lufax and TeraWulf”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lufax	$20.29 billion	0.13	$125.31 million	($0.77)	-3.94
TeraWulf	$69.23 million	20.51	-$73.42 million	N/A	N/A

Lufax has higher revenue and earnings than TeraWulf.

Analyst Ratings

This is a summary of recent ratings and target prices for Lufax and TeraWulf, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lufax	0	2	0	0	2.00
TeraWulf	0	1	7	2	3.10

Lufax presently has a consensus price target of $2.98, indicating a potential downside of 1.85%. TeraWulf has a consensus price target of $8.64, indicating a potential upside of 134.86%. Given TeraWulf’s stronger consensus rating and higher possible upside, analysts clearly believe TeraWulf is more favorable than Lufax.

Summary

TeraWulf beats Lufax on 7 of the 13 factors compared between the two stocks.

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.

About TeraWulf

TeraWulf Inc., together with its subsidiaries, operates as a digital asset technology company in the United States. The company develops, owns, and operates bitcoin mining facilities in New York and Pennsylvania. It is also involved in the provision of miner hosting services to third-party entities. The company was founded in 2021 and is headquartered in Easton, Maryland.