Lufax (NYSE:LU – Get Free Report) and PROG (NYSE:PRG – Get Free Report) are both small-cap finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, profitability, earnings, risk, institutional ownership and valuation.
Volatility & Risk
Lufax has a beta of 0.8, suggesting that its share price is 20% less volatile than the S&P 500. Comparatively, PROG has a beta of 1.79, suggesting that its share price is 79% more volatile than the S&P 500.
Institutional & Insider Ownership
69.1% of Lufax shares are held by institutional investors. Comparatively, 97.9% of PROG shares are held by institutional investors. 3.7% of PROG shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Lufax | N/A | N/A | N/A |
| PROG | 5.57% | 21.88% | 9.15% |
Valuation & Earnings
This table compares Lufax and PROG”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Lufax | $3.77 billion | 0.39 | -$291.79 million | ($0.78) | -2.19 |
| PROG | $2.41 billion | 0.70 | $146.79 million | $3.62 | 11.78 |
PROG has lower revenue, but higher earnings than Lufax. Lufax is trading at a lower price-to-earnings ratio than PROG, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of recent ratings and recommmendations for Lufax and PROG, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Lufax | 2 | 0 | 1 | 0 | 1.67 |
| PROG | 0 | 3 | 6 | 1 | 2.80 |
Lufax presently has a consensus price target of $2.00, indicating a potential upside of 17.30%. PROG has a consensus price target of $49.44, indicating a potential upside of 15.97%. Given Lufax’s higher possible upside, analysts clearly believe Lufax is more favorable than PROG.
Summary
PROG beats Lufax on 13 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 PROG
PROG Holdings, Inc. (NYSE:PRG) is a financial technology holding company based in Salt Lake City, Utah with three business segments: Progressive Leasing, which offers lease-to-own transactions primarily to credit-challenged consumers through e-commerce and point-of-sale retail partners, via online, mobile, and in-store solutions; Vive Financial, which provides consumers who may not qualify for traditional prime lending with a variety of second-look, revolving credit products through private label and branded credit cards; and Four Technologies, which provides consumers of all credit backgrounds Buy Now, Pay Later (BNPL) options through four interest-free installments via its platform, Four.
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