Qfin (NASDAQ:QFIN – Get Free Report) and PROG (NYSE:PRG – Get Free Report) are both small-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, earnings, analyst recommendations, valuation, profitability, dividends and institutional ownership.
Profitability
This table compares Qfin and PROG’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Qfin | 22.23% | 15.23% | 6.60% |
| PROG | 5.57% | 21.88% | 9.15% |
Analyst Ratings
This is a summary of current ratings for Qfin and PROG, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Qfin | 3 | 4 | 1 | 0 | 1.75 |
| PROG | 0 | 3 | 6 | 1 | 2.80 |
Insider and Institutional Ownership
74.8% of Qfin shares are owned by institutional investors. Comparatively, 97.9% of PROG shares are owned by institutional investors. 17.1% of Qfin shares are owned by insiders. Comparatively, 3.7% of PROG shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Earnings & Valuation
This table compares Qfin and PROG”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Qfin | $2.75 billion | 0.41 | $856.52 million | $4.16 | 2.20 |
| PROG | $2.41 billion | 0.66 | $146.79 million | $3.62 | 10.99 |
Qfin has higher revenue and earnings than PROG. Qfin is trading at a lower price-to-earnings ratio than PROG, indicating that it is currently the more affordable of the two stocks.
Dividends
Qfin pays an annual dividend of $1.54 per share and has a dividend yield of 16.8%. PROG pays an annual dividend of $0.56 per share and has a dividend yield of 1.4%. Qfin pays out 37.0% of its earnings in the form of a dividend. PROG pays out 15.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. PROG has increased its dividend for 2 consecutive years.
Risk & Volatility
Qfin has a beta of 0.63, indicating that its stock price is 37% less volatile than the S&P 500. Comparatively, PROG has a beta of 1.79, indicating that its stock price is 79% more volatile than the S&P 500.
Summary
PROG beats Qfin on 11 of the 18 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 PROG
PROG Holdings, Inc. (NYSE:PRG) is a financial technology holding company based in Salt Lake City, Utah with three business segments: Progressive Leasing, which offers lease-to-own transactions primarily to credit-challenged consumers through e-commerce and point-of-sale retail partners, via online, mobile, and in-store solutions; Vive Financial, which provides consumers who may not qualify for traditional prime lending with a variety of second-look, revolving credit products through private label and branded credit cards; and Four Technologies, which provides consumers of all credit backgrounds Buy Now, Pay Later (BNPL) options through four interest-free installments via its platform, Four.
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