Lufax (NYSE:LU) versus Bitcoin Depot (NASDAQ:BTM) Critical Contrast

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

Analyst Recommendations

This is a summary of recent ratings and price targets for Bitcoin Depot and Lufax, as provided by MarketBeat.

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

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

Insider and Institutional Ownership

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

Volatility and Risk

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

Profitability

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

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

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bitcoin Depot	$585.28 million	0.21	-$26.10 million	($0.93)	-2.15
Lufax	$20.29 billion	0.11	$125.31 million	($0.77)	-3.29

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.

Summary

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

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.

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.