Lufax (NYSE:LU – Get Free Report) and Atlanticus (NASDAQ:ATLC – Get Free Report) are both small-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, profitability, dividends, earnings, analyst recommendations, valuation and risk.
Earnings & Valuation
This table compares Lufax and Atlanticus”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Lufax | $23.11 billion | 0.06 | -$291.79 million | ($0.78) | -1.90 |
| Atlanticus | $538.97 million | 2.81 | $122.20 million | $7.69 | 13.01 |
Analyst Recommendations
This is a summary of recent recommendations for Lufax and Atlanticus, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Lufax | 2 | 0 | 1 | 0 | 1.67 |
| Atlanticus | 0 | 2 | 5 | 1 | 2.88 |
Lufax presently has a consensus target price of $2.00, indicating a potential upside of 34.68%. Atlanticus has a consensus target price of $126.00, indicating a potential upside of 25.99%. Given Lufax’s higher possible upside, research analysts clearly believe Lufax is more favorable than Atlanticus.
Risk and Volatility
Lufax has a beta of 0.81, indicating that its stock price is 19% less volatile than the S&P 500. Comparatively, Atlanticus has a beta of 2.11, indicating that its stock price is 111% more volatile than the S&P 500.
Profitability
This table compares Lufax and Atlanticus’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Lufax | N/A | N/A | N/A |
| Atlanticus | 5.80% | 26.06% | 2.15% |
Institutional and Insider Ownership
69.1% of Lufax shares are held by institutional investors. Comparatively, 14.1% of Atlanticus shares are held by institutional investors. 51.0% of Atlanticus shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Summary
Atlanticus beats Lufax on 12 of the 15 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 Atlanticus
Atlanticus Holdings Corporation, a financial technology company, provides credit and related financial services and products to customers the United States. It operates in two segments, Credit as a Service, and Auto Finance. The Credit as a Service segment originates a range of consumer loan products, such as private label and general purpose credit cards originated by lenders through various channels, including retail and healthcare, direct mail solicitation, digital marketing, and partnerships with third parties; and offers credit to their customers for the purchase of various goods and services, including consumer electronics, furniture, elective medical procedures, healthcare, and home-improvements by partnering with retailers, healthcare providers, and other service providers. This segment also offers loan servicing, such as risk management and customer service outsourcing for third parties; and engages in testing and investment activities in consumer finance technology platforms. The Auto Finance segment purchases and/or services loans secured by automobiles from or for a pre-qualified network of independent automotive dealers and automotive finance companies in the buy-here, pay-here, and used car business. This segment also provides floor plan financing and installment lending products. It also invests in and services portfolios of credit card receivables. The company was founded in 1996 and is headquartered in Atlanta, Georgia.
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