Financial Review: Loop Industries (NASDAQ:LOOP) versus Qfin (NASDAQ:QFIN)

Qfin (NASDAQ:QFIN) and Loop Industries (NASDAQ:LOOP) 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.

Volatility & Risk

Qfin has a beta of 0.4, indicating that its stock price is 60% less volatile than the S&P 500. Comparatively, Loop Industries has a beta of 1.59, indicating that its stock price is 59% more volatile than the S&P 500.

Profitability

This table compares Qfin and Loop Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Qfin	35.09%	28.73%	12.22%
Loop Industries	-120.79%	N/A	-25.58%

Institutional & Insider Ownership

74.8% of Qfin shares are owned by institutional investors. Comparatively, 4.9% of Loop Industries shares are owned by institutional investors. 17.1% of Qfin shares are owned by company insiders. Comparatively, 45.9% of Loop Industries shares are owned by company 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.

Valuation and Earnings

This table compares Qfin and Loop Industries”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Qfin	$16.57 billion	0.17	$858.21 million	$6.86	2.90
Loop Industries	$10.89 million	4.30	-$15.06 million	($0.25)	-3.90

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

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Qfin	1	2	1	0	2.00
Loop Industries	0	0	0	0	0.00

Qfin currently has a consensus target price of $36.85, indicating a potential upside of 85.08%. Given Qfin’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Qfin is more favorable than Loop Industries.

Summary

Qfin beats Loop Industries on 11 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 Loop Industries

Loop Industries, Inc., a technology company, focuses on depolymerizing waste polyethylene terephthalate PET plastics and polyester fibers, including plastic bottles, packaging, carpets and textiles of any color, transparency and even ocean plastics that have been degraded by the sun and salt, to its base building blocks. Its polymerized monomers into virgin-quality PET resins for use in food-grade plastic packaging, such as plastic bottles for water and carbonated soft drinks, and containers for food and other consumer products; and polyester fibers, including textiles, clothing, and apparel. The company was incorporated in 2010 and is based in Terrebonne, Canada.