Contrasting Lufax (NYSE:LU) and Mercurity Fintech (NASDAQ:MFH)

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

Risk and Volatility

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

Profitability

This table compares Lufax and Mercurity Fintech’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%
Mercurity Fintech	N/A	N/A	N/A

Institutional & Insider Ownership

69.1% of Lufax shares are held by institutional investors. Comparatively, 30.8% of Mercurity Fintech shares are held by institutional investors. 62.8% of Mercurity Fintech shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

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

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

Lufax currently has a consensus target price of $3.58, indicating a potential upside of 45.66%. Given Lufax’s stronger consensus rating and higher probable upside, analysts clearly believe Lufax is more favorable than Mercurity Fintech.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lufax	$20.29 billion	0.11	$125.31 million	($0.77)	-3.19
Mercurity Fintech	$716,863.00	475.19	-$9.36 million	N/A	N/A

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 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 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.