Comparing Qfin (NASDAQ:QFIN) and Aterian (NASDAQ:ATER)

Qfin (NASDAQ:QFIN) and Aterian (NASDAQ:ATER) are both small-cap business services companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, analyst recommendations, valuation, profitability, earnings and dividends.

Valuation & Earnings

This table compares Qfin and Aterian”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Qfin	$2.75 billion	0.71	$856.52 million	$6.16	2.22
Aterian	$68.97 million	0.11	-$18.98 million	($2.40)	-0.28

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

Analyst Ratings

This is a breakdown of current ratings for Qfin and Aterian, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Qfin	2	1	1	0	1.75
Aterian	1	1	0	0	1.50

Qfin currently has a consensus price target of $22.20, indicating a potential upside of 62.40%. Given Qfin’s stronger consensus rating and higher probable upside, equities analysts clearly believe Qfin is more favorable than Aterian.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Qfin	31.13%	24.97%	10.22%
Aterian	-27.52%	-68.00%	-36.77%

Risk & Volatility

Qfin has a beta of 0.51, meaning that its stock price is 49% less volatile than the S&P 500. Comparatively, Aterian has a beta of 0.04, meaning that its stock price is 96% less volatile than the S&P 500.

Institutional & Insider Ownership

74.8% of Qfin shares are owned by institutional investors. Comparatively, 7.0% of Aterian shares are owned by institutional investors. 17.1% of Qfin shares are owned by insiders. Comparatively, 19.5% of Aterian shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Qfin beats Aterian on 13 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 Aterian

Aterian, Inc., together with its subsidiaries, operates as a technology-enabled consumer products company in North America and internationally. Its platform offers home and kitchen appliances; kitchenware; cooling and air quality appliances, such as dehumidifiers; health and beauty products; and essential oils under the Squatty Potty, hOmeLabs, Mueller, Pursteam, Healing Solutions, and Photo Paper Direct brand names. The company primarily serves individual online consumers through online retail channels, such as Amazon and Walmart, as well as through its owned and operated websites and other marketplaces. The company was formerly known as Mohawk Group Holdings, Inc. and changed its name to Aterian, Inc. in April 2021. Aterian, Inc. was founded in 2014 and is headquartered in Summit, New Jersey.