BitFuFu (NASDAQ:FUFU) vs. LexinFintech (NASDAQ:LX) Critical Analysis

LexinFintech (NASDAQ:LXGet Free Report) and BitFuFu (NASDAQ:FUFUGet Free Report) are both small-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, institutional ownership, profitability, valuation, analyst recommendations, risk and dividends.

Risk & Volatility

LexinFintech has a beta of 0.66, suggesting that its share price is 34% less volatile than the S&P 500. Comparatively, BitFuFu has a beta of 0.24, suggesting that its share price is 76% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings for LexinFintech and BitFuFu, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
LexinFintech 0 0 1 0 3.00
BitFuFu 0 0 1 0 3.00

BitFuFu has a consensus target price of $7.00, suggesting a potential upside of 44.93%. Given BitFuFu’s higher probable upside, analysts clearly believe BitFuFu is more favorable than LexinFintech.

Profitability

This table compares LexinFintech and BitFuFu’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
LexinFintech 5.34% 7.47% 3.26%
BitFuFu 8.17% 40.15% 13.55%

Earnings and Valuation

This table compares LexinFintech and BitFuFu”s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
LexinFintech $1.84 billion 0.69 $150.14 million $0.63 12.35
BitFuFu $452.74 million 1.74 $10.49 million N/A N/A

LexinFintech has higher revenue and earnings than BitFuFu.

Insider and Institutional Ownership

37.3% of BitFuFu shares are held by institutional investors. 27.8% of LexinFintech shares are held by company insiders. Comparatively, 35.0% of BitFuFu shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

BitFuFu beats LexinFintech on 7 of the 10 factors compared between the two stocks.

About LexinFintech

(Get Free Report)

LexinFintech Holdings Ltd., through its subsidiaries, provides online consumer finance services in the People's Republic of China. The company operates Fenqile.com, an online consumption and consumer finance platform that offers installment purchase and personal installment loans, as well as online direct sales with installment payment terms; and Le Hua Card, a scenario-based lending. It also provides technology-driven platform services for financial institution customers and partners to increase revenues, manage financial risks, enhance operating efficiency and service quality, enhance collections, and reduce overall costs; Maiya application, a location-based services shopping experience with buy-now and pay-later options; and Juzi Licai, an online investment platform. In addition, the company offers technical support and consulting, software development, financing guarantee, and financial technology services. The company was formerly known as Staging Finance Holding Ltd. and changed its name to LexinFintech Holdings Ltd. in March 2017. LexinFintech Holdings Ltd. was founded in 2013 and is headquartered in Shenzhen, the People's Republic of China.

About BitFuFu

(Get Free Report)

BitFuFu Inc. provides digital asset mining and cloud-mining services in Singapore. It also offers miner rental, and miner hosting and sales services to institutional customers and individual digital asset enthusiasts. The company is based in Singapore, Singapore.

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