Head to Head Contrast: Atlanticus (NASDAQ:ATLC) vs. Lufax (NYSE:LU)

Atlanticus (NASDAQ:ATLC) and Lufax (NYSE:LU) are both small-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, risk, valuation, profitability, earnings, analyst recommendations and institutional ownership.

Earnings and Valuation

This table compares Atlanticus and Lufax”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Atlanticus	$538.97 million	2.81	$122.20 million	$7.69	13.01
Lufax	$23.11 billion	0.06	-$291.79 million	($0.78)	-1.90

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

Insider and Institutional Ownership

14.1% of Atlanticus shares are held by institutional investors. Comparatively, 69.1% of Lufax shares are held by institutional investors. 51.0% of Atlanticus shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Risk & Volatility

Atlanticus has a beta of 2.11, meaning that its stock price is 111% more volatile than the S&P 500. Comparatively, Lufax has a beta of 0.81, meaning that its stock price is 19% less volatile than the S&P 500.

Profitability

This table compares Atlanticus and Lufax’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Atlanticus	5.80%	26.06%	2.15%
Lufax	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of current ratings and price targets for Atlanticus and Lufax, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Atlanticus	0	2	5	1	2.88
Lufax	2	0	1	0	1.67

Atlanticus presently has a consensus price target of $126.00, suggesting a potential upside of 25.99%. Lufax has a consensus price target of $2.00, suggesting a potential upside of 34.68%. Given Lufax’s higher possible upside, analysts plainly believe Lufax is more favorable than Atlanticus.

Summary

Atlanticus beats Lufax on 12 of the 15 factors compared between the two stocks.

About Atlanticus

Atlanticus Holdings Corporation, a financial technology company, provides credit and related financial services and products to customers the United States. It operates in two segments, Credit as a Service, and Auto Finance. The Credit as a Service segment originates a range of consumer loan products, such as private label and general purpose credit cards originated by lenders through various channels, including retail and healthcare, direct mail solicitation, digital marketing, and partnerships with third parties; and offers credit to their customers for the purchase of various goods and services, including consumer electronics, furniture, elective medical procedures, healthcare, and home-improvements by partnering with retailers, healthcare providers, and other service providers. This segment also offers loan servicing, such as risk management and customer service outsourcing for third parties; and engages in testing and investment activities in consumer finance technology platforms. The Auto Finance segment purchases and/or services loans secured by automobiles from or for a pre-qualified network of independent automotive dealers and automotive finance companies in the buy-here, pay-here, and used car business. This segment also provides floor plan financing and installment lending products. It also invests in and services portfolios of credit card receivables. The company was founded in 1996 and is headquartered in Atlanta, Georgia.

About Lufax

Lufax Holding Ltd operates as a financial service empowering institution for small and micro businesses in China. The company offers loan products, including general unsecured loans and secured loans, as well as consumer finance loans. It also provides wealth management products, such as asset management plans, mutual fund products, private investment fund products, and trust products. The company was founded in 2005 and is headquartered in Shanghai, China.