Reviewing Bitcoin Depot (NASDAQ:BTM) & Lufax (NYSE:LU)

Lufax (NYSE:LU) and Bitcoin Depot (NASDAQ:BTM) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, valuation, analyst recommendations, profitability, earnings, dividends and institutional ownership.

Analyst Ratings

This is a breakdown of current ratings and target prices for Lufax and Bitcoin Depot, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lufax	0	3	0	0	2.00
Bitcoin Depot	0	1	2	1	3.00

Lufax presently has a consensus price target of $3.58, suggesting a potential upside of 41.35%. Bitcoin Depot has a consensus price target of $3.67, suggesting a potential upside of 83.33%. Given Bitcoin Depot’s stronger consensus rating and higher possible upside, analysts plainly believe Bitcoin Depot is more favorable than Lufax.

Institutional & Insider Ownership

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

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%

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)	-3.29
Bitcoin Depot	$585.28 million	0.21	-$26.10 million	($0.93)	-2.15

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.

Volatility and Risk

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

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

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.