Bitcoin Depot (NASDAQ:BTM) and Lufax (NYSE:LU) Critical Review

Lufax (NYSE:LUGet Free Report) and Bitcoin Depot (NASDAQ:BTMGet Free Report) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their valuation, earnings, institutional ownership, profitability, dividends, risk and analyst recommendations.

Institutional and Insider Ownership

69.1% of Lufax shares are held by institutional investors. Comparatively, 9.2% of Bitcoin Depot shares are held by institutional investors. 70.2% of Bitcoin Depot shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Lufax and Bitcoin Depot”s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Lufax $20.29 billion 0.11 $125.31 million ($0.77) -3.19
Bitcoin Depot $585.28 million 0.18 -$26.10 million ($0.93) -1.86

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

Analyst Ratings

This is a summary of recent ratings and recommmendations for Lufax and Bitcoin Depot, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Lufax 0 3 0 0 2.00
Bitcoin Depot 0 0 2 1 3.33

Lufax presently has a consensus price target of $3.58, indicating a potential upside of 45.66%. Bitcoin Depot has a consensus price target of $3.75, indicating a potential upside of 116.76%. Given Bitcoin Depot’s stronger consensus rating and higher probable upside, analysts clearly believe Bitcoin Depot is more favorable than Lufax.

Profitability

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

Net Margins Return on Equity Return on Assets
Lufax -12.75% -3.63% -1.45%
Bitcoin Depot -2.28% -488.33% -15.15%

Volatility & Risk

Lufax has a beta of 0.85, meaning that its stock price is 15% less volatile than the S&P 500. Comparatively, Bitcoin Depot has a beta of -0.09, meaning that its stock price is 109% less volatile than the S&P 500.

Summary

Bitcoin Depot beats Lufax on 8 of the 15 factors compared between the two stocks.

About Lufax

(Get Free Report)

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.

About Bitcoin Depot

(Get Free Report)

Bitcoin Depot Inc. owns and operates a network of cryptocurrency kiosks in North America. Its customers can buy and sell bitcoin, litecoin, and ethereum cryptocurrencies using the BTM kiosk network and other services. The company also engages in the sale of cryptocurrency to consumers at a network of retail locations through its BDCheckout product offering, as well as its website through over-the-counter trade. The company is headquartered in Atlanta, Georgia. Bitcoin Depot Inc. is a subsidiary of BT Assets, Inc.

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