Lufax (NYSE:LU) vs. BTC Digital (NASDAQ:BTCT) Critical Review

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

Earnings and Valuation

This table compares Lufax and BTC Digital”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lufax	$4.82 billion	0.52	$125.31 million	($0.77)	-3.75
BTC Digital	$8.48 million	2.05	-$2.82 million	N/A	N/A

Lufax has higher revenue and earnings than BTC Digital.

Institutional & Insider Ownership

69.1% of Lufax shares are owned by institutional investors. Comparatively, 7.3% of BTC Digital shares are owned by institutional investors. 0.6% of BTC Digital shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Lufax and BTC Digital’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%
BTC Digital	N/A	N/A	N/A

Analyst Ratings

This is a summary of recent recommendations for Lufax and BTC Digital, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lufax	0	2	0	0	2.00
BTC Digital	0	0	0	0	0.00

Lufax presently has a consensus price target of $2.98, indicating a potential upside of 3.12%. Given Lufax’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Lufax is more favorable than BTC Digital.

Volatility and Risk

Lufax has a beta of 0.84, meaning that its share price is 16% less volatile than the S&P 500. Comparatively, BTC Digital has a beta of 2.56, meaning that its share price is 156% more volatile than the S&P 500.

Summary

BTC Digital 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 BTC Digital

BTC Digital Ltd. a crypto asset technology company engages in bitcoin mining business. It is also involved in mining machines resale and rental business. The company was formerly known as Meten Holding Group Ltd. and changed its name to BTC Digital Ltd. in August 2023. The company was founded in 2006 and is headquartered in Shenzhen, China.