Head to Head Review: Lufax (NYSE:LU) and The9 (NASDAQ:NCTY)

Lufax (NYSE:LU) and The9 (NASDAQ:NCTY) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, profitability, valuation, dividends and risk.

Profitability

This table compares Lufax and The9’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lufax	-2.17%	-0.72%	-0.27%
The9	N/A	N/A	N/A

Insider and Institutional Ownership

69.1% of Lufax shares are held by institutional investors. Comparatively, 0.5% of The9 shares are held by institutional investors. 30.8% of The9 shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Lufax and The9’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lufax	$4.82 billion	0.55	$125.31 million	($0.14)	-33.14
The9	$25.22 million	1.44	$2.82 million	N/A	N/A

Lufax has higher revenue and earnings than The9.

Analyst Recommendations

This is a summary of current ratings and target prices for Lufax and The9, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lufax	1	3	2	0	2.17
The9	0	0	0	0	N/A

Lufax currently has a consensus target price of $6.91, suggesting a potential upside of 49.01%. Given Lufax’s higher possible upside, research analysts clearly believe Lufax is more favorable than The9.

Risk and Volatility

Lufax has a beta of 0.82, suggesting that its share price is 18% less volatile than the S&P 500. Comparatively, The9 has a beta of 1.88, suggesting that its share price is 88% more volatile than the S&P 500.

Summary

The9 beats Lufax on 6 of the 11 factors compared between the two stocks.

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.

About The9

The9 Limited, together with its subsidiaries, operates as Internet company in the People's Republic of China and internationally. It also involves in the operation of cryptocurrency mining and Non-Fungible Token platform NFTSTAR, a NFT trading and community platform that provides users with purchase, trade, and interactive activities. The company was formerly known as GameNow.net Limited and changed its name to The9 Limited in February 2004. The9 Limited was incorporated in 1999 and is headquartered in Shanghai, the People's Republic of China.