Analyzing Edenred (OTCMKTS:EDNMY) and Qfin (NASDAQ:QFIN)

Qfin (NASDAQ:QFIN) and Edenred (OTCMKTS:EDNMY) are both business services companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, risk, profitability and valuation.

Dividends

Qfin pays an annual dividend of $1.54 per share and has a dividend yield of 12.3%. Edenred pays an annual dividend of $0.51 per share and has a dividend yield of 3.6%. Qfin pays out 28.2% of its earnings in the form of a dividend.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Qfin	$2.75 billion	0.56	$856.52 million	$5.46	2.30
Edenred	$3.35 billion	2.02	$589.46 million	N/A	N/A

Qfin has higher earnings, but lower revenue than Edenred.

Institutional and Insider Ownership

74.8% of Qfin shares are owned by institutional investors. 17.1% of Qfin shares are owned by company 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.

Risk and Volatility

Qfin has a beta of 0.57, suggesting that its share price is 43% less volatile than the S&P 500. Comparatively, Edenred has a beta of 0.76, suggesting that its share price is 24% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Qfin	27.48%	20.85%	8.71%
Edenred	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of current recommendations and price targets for Qfin and Edenred, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Qfin	1	3	1	0	2.00
Edenred	0	5	1	1	2.43

Qfin currently has a consensus target price of $19.91, indicating a potential upside of 58.51%. Given Qfin’s higher possible upside, equities research analysts clearly believe Qfin is more favorable than Edenred.

Summary

Qfin beats Edenred on 8 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 Edenred

Edenred SE provides digital platform for services and payments for companies, employees, and merchants worldwide. It offers employee benefit solutions, including Ticket Restaurant, a solution that allows employees to take time out for lunch at a partner merchant; Ticket Alimentación that allows users to pay for groceries in neighborhood stores and supermarkets; Ticket Regalo, a gift voucher; Ticket CESU, a human services solution; Ticket Plus Card, a solution that enables the purchase of staples, such as food and fuel; Ticket Welfare, which employees can use to pay for a range of services, such as access to sports facilities and solutions for their children’s educational needs; Ticket Guardería for companies without on-site daycare facilities; Childcare Vouchers; Ticket EcoCheque, a solutions that encourages purchase of environmentally friendly products; Ticket Kadeos Culture and Ticket Cultura that are solutions for cultural goods and services. The company also offers mobility solutions comprising Ticket Log for light vehicle fleet management; Ticket Fleet Pro and Ticket Cargo for truck fleet management; Ticket Car for employees to pay for fuel and other business travel expenses; UTA Edenred for paying tolls, optimize routes, pay for roadside assistance and truck servicing, and for VAT reimbursement; fuel cards; and refund services for VAT and excise duties. In addition, it provides complementary solutions comprising corporate payment, invoice processing automation, and salary card solutions. Edenred SE was founded in 1962 and is headquartered in Issy-les-Moulineaux, France.