Coinbase Global (NASDAQ:COIN) & LexinFintech (NASDAQ:LX) Critical Contrast

Coinbase Global (NASDAQ:COIN – Get Rating) and LexinFintech (NASDAQ:LX – Get Rating) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their analyst recommendations, earnings, institutional ownership, risk, dividends, valuation and profitability.

Analyst Ratings

This is a summary of recent ratings and target prices for Coinbase Global and LexinFintech, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Coinbase Global	1	4	15	0	2.70
LexinFintech	0	2	3	0	2.60

Coinbase Global presently has a consensus price target of $287.88, indicating a potential upside of 155.42%. LexinFintech has a consensus price target of $10.44, indicating a potential upside of 307.73%. Given LexinFintech’s higher probable upside, analysts clearly believe LexinFintech is more favorable than Coinbase Global.

Earnings & Valuation

This table compares Coinbase Global and LexinFintech’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Coinbase Global	$7.84 billion	3.16	$3.62 billion	$14.41	7.82
LexinFintech	$1.79 billion	0.26	$366.24 million	$1.76	1.45

Coinbase Global has higher revenue and earnings than LexinFintech. LexinFintech is trading at a lower price-to-earnings ratio than Coinbase Global, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Coinbase Global and LexinFintech’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Coinbase Global	46.23%	77.65%	22.06%
LexinFintech	20.47%	32.63%	11.74%

Institutional & Insider Ownership

26.3% of Coinbase Global shares are owned by institutional investors. Comparatively, 24.0% of LexinFintech shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Coinbase Global beats LexinFintech on 11 of the 12 factors compared between the two stocks.

About Coinbase Global (Get Rating)

Coinbase Global, Inc. provides financial infrastructure and technology for the cryptoeconomy in the United States and internationally. The company offers the primary financial account in the cryptoeconomy for retailers; a marketplace with a pool of liquidity for transacting in crypto assets for institutions; and technology and services that enable ecosystem partners to build crypto-based applications and securely accept crypto assets as payment. Coinbase Global, Inc. was founded in 2012 and is based in Wilmington, Delaware.

About LexinFintech (Get Rating)

LexinFintech Holdings Ltd., through its subsidiaries, operates as an online consumption and consumer finance platform for young professionals in the People's Republic of China. The company operates Fenqile.com, a consumption and consumer finance platform that offers installment purchase loans, personal installment loans, and other loan products, as well as provides online direct sales with installment payment terms; and Le Card, a membership platform, which offers savings, benefits, and membership privileges to food and beverage, apparel, hospitality, and leisure sectors. It also matches user loans with diversified funding sources, including individual investors on its Juzi Licai online investment platform, third-party commercial banks, consumer finance companies, institutional funding partners, investors of its asset-backed securities, and other licensed financial institutions. In addition, the company offers technical support and consulting services; Software development services; and financial technology services. The company was formerly known as Staging Finance Holding Ltd. and changed its name to LexinFintech Holdings Ltd. in March 2017. LexinFintech Holdings Ltd. was incorporated in 2013 and is headquartered in Shenzhen, the People's Republic of China.