Contrasting Loop Industries (NASDAQ:LOOP) and Qfin (NASDAQ:QFIN)

Loop Industries (NASDAQ:LOOP) and Qfin (NASDAQ:QFIN) are both business services companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, earnings, analyst recommendations, profitability and valuation.

Volatility & Risk

Loop Industries has a beta of 1.59, indicating that its share price is 59% more volatile than the S&P 500. Comparatively, Qfin has a beta of 0.4, indicating that its share price is 60% less volatile than the S&P 500.

Insider & Institutional Ownership

4.9% of Loop Industries shares are owned by institutional investors. Comparatively, 74.8% of Qfin shares are owned by institutional investors. 45.9% of Loop Industries shares are owned by company insiders. Comparatively, 17.1% of Qfin shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations and price targets for Loop Industries and Qfin, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Loop Industries	0	0	0	0	0.00
Qfin	1	2	1	0	2.00

Qfin has a consensus price target of $36.85, indicating a potential upside of 94.05%. Given Qfin’s stronger consensus rating and higher possible upside, analysts clearly believe Qfin is more favorable than Loop Industries.

Earnings & Valuation

This table compares Loop Industries and Qfin”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Loop Industries	$10.89 million	4.19	-$15.06 million	($0.25)	-3.80
Qfin	$2.35 billion	1.15	$858.21 million	$6.86	2.77

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

Profitability

This table compares Loop Industries and Qfin’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Loop Industries	-120.79%	N/A	-25.58%
Qfin	35.09%	28.73%	12.22%

Summary

Qfin beats Loop Industries on 11 of the 14 factors compared between the two stocks.

About Loop Industries

Loop Industries, Inc., a technology company, focuses on depolymerizing waste polyethylene terephthalate PET plastics and polyester fibers, including plastic bottles, packaging, carpets and textiles of any color, transparency and even ocean plastics that have been degraded by the sun and salt, to its base building blocks. Its polymerized monomers into virgin-quality PET resins for use in food-grade plastic packaging, such as plastic bottles for water and carbonated soft drinks, and containers for food and other consumer products; and polyester fibers, including textiles, clothing, and apparel. The company was incorporated in 2010 and is based in Terrebonne, Canada.

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.