Qfin (NASDAQ:QFIN – Get Free Report) and Futu (NASDAQ:FUTU – Get Free Report) are both business services companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, analyst recommendations, valuation, earnings, institutional ownership, profitability and dividends.
Volatility & Risk
Qfin has a beta of 0.45, meaning that its stock price is 55% less volatile than the S&P 500. Comparatively, Futu has a beta of 0.57, meaning that its stock price is 43% less volatile than the S&P 500.
Profitability
This table compares Qfin and Futu’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Qfin | 38.66% | 30.74% | 13.78% |
| Futu | 44.25% | 26.36% | 4.64% |
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Qfin | $2.35 billion | 1.90 | $858.21 million | $7.08 | 4.01 |
| Futu | $1.75 billion | 14.78 | $700.73 million | $7.21 | 25.78 |
Qfin has higher revenue and earnings than Futu. Qfin is trading at a lower price-to-earnings ratio than Futu, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of recent ratings and target prices for Qfin and Futu, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Qfin | 0 | 0 | 3 | 0 | 3.00 |
| Futu | 0 | 1 | 7 | 1 | 3.00 |
Qfin currently has a consensus target price of $51.73, suggesting a potential upside of 82.42%. Futu has a consensus target price of $190.43, suggesting a potential upside of 2.44%. Given Qfin’s higher probable upside, research analysts clearly believe Qfin is more favorable than Futu.
Insider and Institutional Ownership
74.8% of Qfin shares are held by institutional investors. 17.1% of Qfin shares are held by company insiders. Comparatively, 35.2% of Futu shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Summary
Futu beats Qfin on 8 of the 14 factors compared between the two stocks.
About Qfin
Qifu Technology, Inc., through its subsidiaries, operates credit-tech platform under the 360 Jietiao brand in the People's Republic of China. It provides credit-driven services that matches borrowers with financial institutions to conduct customer acquisition, initial and credit screening, advanced risk assessment, credit assessment, fund matching, and other post-facilitation services; and platform services, including loan facilitation and post-facilitation services to financial institution partners under intelligence credit engine, referral services, and risk management software-as-a-service. The company also offers e-commerce loans, enterprise loans, and invoice loans to SME owners. It serves financial institutions, consumers, and small- and micro-enterprises. The company was formerly known as 360 DigiTech, Inc. and changed its name to Qifu Technology, Inc. in March 2023. The company was founded in 2016 and is headquartered in Shanghai, the People's Republic of China.
About Futu
Futu Holdings Limited provides digitalized securities brokerage and wealth management product distribution service in Hong Kong and internationally. It offers online financial services, including securities and derivative trades brokerage, margin financing and fund distribution services through its Futubull and Moomoo digital platforms. The company also provides financial information and online community services; online wealth management services under the Money Plus brand name through its Futubull and moomoo platforms, which provides its client access to mutual funds, private funds, bonds, structured products, and other wealth management products; market data and information services; and NiuNiu Community, which serves as an open forum for users and clients to share insights, ask questions, and exchange ideas. Futu Holdings Limited was founded in 2007 and is headquartered in Sheung Wan, Hong Kong.
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