Head-To-Head Survey: AMTD Digital (NYSE:HKD) & Lufax (NYSE:LU)

Lufax (NYSE:LU) and AMTD Digital (NYSE:HKD) are both small-cap finance companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, dividends, risk and profitability.

Institutional and Insider Ownership

69.1% of Lufax shares are owned by institutional investors. Comparatively, 5.8% of AMTD Digital shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Lufax and AMTD Digital’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lufax	$25.36 billion	0.05	$125.31 million	($0.14)	-16.50
AMTD Digital	$33.07 million	21.54	$41.74 million	N/A	N/A

Lufax has higher revenue and earnings than AMTD Digital.

Risk & Volatility

Lufax has a beta of 0.82, meaning that its stock price is 18% less volatile than the S&P 500. Comparatively, AMTD Digital has a beta of 2.45, meaning that its stock price is 145% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Lufax	-2.17%	-0.72%	-0.27%
AMTD Digital	N/A	N/A	N/A

Analyst Ratings

This is a summary of current ratings and price targets for Lufax and AMTD Digital, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lufax	1	3	0	0	1.75
AMTD Digital	0	0	0	0	N/A

Lufax currently has a consensus target price of $5.68, suggesting a potential upside of 145.89%. Given Lufax’s higher probable upside, analysts clearly believe Lufax is more favorable than AMTD Digital.

Summary

AMTD Digital beats Lufax on 5 of the 9 factors compared between the two stocks.

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.

About AMTD Digital

AMTD Digital Inc., through its subsidiaries, designs and develops a digital platform to provide financial, media, content and marketing, and investment solutions in Asia. The company operates through Digital Solutions ServicesFinancial Services, Digital Solutions ServicesNon Financial Services, Digital Media, Content, and Marketing Services, and Digital Investments segments. It offers deposit, personal loan, credit card, fund transfer, cross border remittance, insurance, and other payment services. In addition, the company operates SpiderNet ecosystem, a platform to enhance their investor communication, investor relations, and corporate communication to enhance their valuation. Further, it offers movies, podcasts, webinars, and videos through online media platforms. Additionally, the company invests in hotel related activities. AMTD Digital Inc. was incorporated in 2019 and is based in Paris, France. AMTD Digital Inc. operates as a subsidiary of AMTD IDEA Group.