Comparing Lument Finance Trust (NYSE:LFT) and 9F (NASDAQ:JFU)

Lument Finance Trust (NYSE:LFT) and 9F (NASDAQ:JFU) are both small-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, earnings, dividends, analyst recommendations, risk, valuation and institutional ownership.

Valuation & Earnings

This table compares Lument Finance Trust and 9F”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lument Finance Trust	$122.13 million	0.91	$22.65 million	$0.19	11.13
9F	$309.97 million	0.10	$6.85 million	N/A	N/A

Lument Finance Trust has higher earnings, but lower revenue than 9F.

Risk & Volatility

Lument Finance Trust has a beta of 0.77, suggesting that its share price is 23% less volatile than the S&P 500. Comparatively, 9F has a beta of 1.23, suggesting that its share price is 23% more volatile than the S&P 500.

Profitability

This table compares Lument Finance Trust and 9F’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lument Finance Trust	14.50%	12.51%	2.01%
9F	N/A	N/A	N/A

Insider and Institutional Ownership

19.5% of Lument Finance Trust shares are held by institutional investors. 2.8% of Lument Finance Trust shares are held by insiders. Comparatively, 53.9% of 9F shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Lument Finance Trust and 9F, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lument Finance Trust	0	1	0	0	2.00
9F	0	0	0	0	0.00

Summary

Lument Finance Trust beats 9F on 7 of the 10 factors compared between the two stocks.

About Lument Finance Trust

Lument Finance Trust, Inc., a real estate investment trust, focuses on investing in, financing, and managing a portfolio of commercial real estate (CRE) debt investments in the United States. The company primarily invests in transitional floating rate CRE mortgage loans on middle market multi-family assets; and other CRE -related investments, including mezzanine loans, preferred equity, commercial mortgage-backed securities, fixed rate loans, construction loans, and other CRE debt instruments. Lument Finance Trust, Inc. is qualified as a real estate investment trust (REIT) under the Internal Revenue Code of 1986. As a REIT, it would not be subject to federal income taxes if it distributes at least 90% of its taxable income to its stockholders. The company was formerly known as Hunt Companies Finance Trust, Inc. and changed its name to Lument Finance Trust, Inc. in December 2020. Lument Finance Trust, Inc. was incorporated in 2012 and is headquartered in New York, New York.

About 9F

9F Inc., together with its subsidiaries, operates internet securities service platform in the People's Republic of China. The company operates through three segments: Technology Empowerment Services, E-commerce business, and Wealth Management. Its products include digital financial accounts that offer online lending, wealth management, and payment facilitation services; revolving and non-revolving loan products to borrowers, as well as traffic referral services to financial institution partners; and a suite of online wealth management products, such as fixed income products, stocks, insurance, bank wealth management products, and mutual funds to investors in various platforms, including Wukong Licai, 9F Wallet, and 9F Puhui. The company also provides payment facilitation and other products and services that help users to pay credit card bills and household bills comprising utility bills; and other value-added services consisting of credit history search, debt consolidation, and user referral services. In addition, it offers technology empowerment services to banking, automobile, securities investment, and insurance industries; and engages in E-commerce business, which offers various categories of merchandise, including 3C products, beauty and skin care products, food, household appliances, and liquor and beverages. It provides its services to borrowers, investors, and financial institutions partners. The company was formerly known as JIUFU Financial Technology Service Limited and changed its name to 9F Inc. in June 2014. 9F Inc. was founded in 2006 and is headquartered in Beijing, the People's Republic of China.