Lufax (NYSE:LU) & Cosmos Group (OTCMKTS:COSG) Critical Analysis

Cosmos Group (OTCMKTS:COSG) and Lufax (NYSE:LU) are both financial services companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, valuation, institutional ownership, analyst recommendations, profitability, risk and earnings.

Insider and Institutional Ownership

17.4% of Lufax shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Cosmos Group and Lufax, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cosmos Group	0	0	0	0	N/A
Lufax	3	4	4	0	2.09

Lufax has a consensus price target of $1.72, suggesting a potential upside of 70.66%. Given Lufax’s higher possible upside, analysts plainly believe Lufax is more favorable than Cosmos Group.

Profitability

This table compares Cosmos Group and Lufax’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cosmos Group	-238.83%	-565.60%	-92.51%
Lufax	4.69%	2.20%	0.63%

Earnings and Valuation

This table compares Cosmos Group and Lufax’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cosmos Group	$20.20 million	0.13	-$104.12 million	($0.08)	-0.07
Lufax	$8.43 billion	0.27	$1.29 billion	$0.13	7.77

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

Summary

Lufax beats Cosmos Group on 11 of the 11 factors compared between the two stocks.

About Cosmos Group

Cosmos Group Holdings Inc. offers financial and money lending services in Hong Kong and internationally. It also operates online platform for the sale and distribution of arts and collectibles. In addition, the company offers unsecured personal loans and mortgage loans to private individuals. Cosmos Group Holdings Inc. is headquartered in Singapore.

About Lufax

Lufax Holding Ltd operates a technology-empowered personal financial services platform in China. The company offers loan products, including unsecured loans and secured loans, as well as consumer finance loans. It also provides wealth management platforms, such as Lufax (Lu.com), Lu International (Singapore), and Lu International (Hong Kong) to the middle class and affluent investors to invest in products and portfolios; retail credit facilitation services platform that offers small business owners with lending solutions; and technology empowerment solutions for financial institutions. The company was founded in 2005 and is headquartered in Shanghai, China.