Head to Head Analysis: Lufax (NYSE:LU) & Bitcoin Depot (NASDAQ:BTM)

Lufax (NYSE:LU) and Bitcoin Depot (NASDAQ:BTM) are both finance companies, and the question arises: which one stands out as the superior business? In this analysis, we will compare the two firms across several key metrics including earnings strength, profitability, analyst recommendations, institutional ownership, risk factors, valuation, and dividends.

Valuation and Earnings

The following table illustrates a comparison of Lufax and Bitcoin Depot concerning gross revenue, earnings per share (EPS), and various valuation ratios.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lufax	$20.29 billion	0.10	$125.31 million	($0.77)	-3.13
Bitcoin Depot	$585.28 million	0.19	-$26.10 million	($0.93)	-1.95

Lufax surpasses Bitcoin Depot in both revenue and earnings metrics. Furthermore, Lufax's lower price-to-earnings ratio suggests it is relatively more affordable compared to Bitcoin Depot.

Analyst Ratings

The table below summarizes current analyst recommendations and price targets for Lufax and Bitcoin Depot, based on data from 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 currently holds a consensus price target of $3.58, indicating a possible upside of 48.69%. Conversely, Bitcoin Depot's consensus target is $3.67, suggesting a potential upside of 102.58%. The stronger consensus rating and higher upside projected for Bitcoin Depot imply that analysts view it more favorably compared to Lufax.

Risk & Volatility

Lufax features a beta of 0.85, indicating that its stock price is approximately 15% less volatile than that of the S&P 500 index. On the other hand, Bitcoin Depot sports a beta of -0.09, suggesting a significantly lower volatility—down by 109% compared to the market.

Profitability

This section analyzes Lufax and Bitcoin Depot with regards to their 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%

Insider and Institutional Ownership

Institutional investors hold 69.1% of Lufax shares, whereas only 9.2% of Bitcoin Depot shares are held by institutions. Interestingly, insiders own 70.2% of Bitcoin Depot's shares. A high level of institutional ownership often signifies that major investors anticipate long-term growth potential in a company.

Summary

In summary, among the fifteen factors evaluated, Bitcoin Depot ranks higher than Lufax in eight categories, suggesting it possesses certain advantages over its competitor.

About Lufax

Lufax Holding Ltd functions as a financial services agency focused on empowering small and micro enterprises throughout China. Their offerings include various loan products, such as unsecured loans, secured loans, and consumer financing options. They also provide wealth management services encompassing asset management schemes, mutual funds, private investment products, and trust funds. Established in 2005, Lufax is headquartered in Shanghai, China.

About Bitcoin Depot

Bitcoin Depot Inc. operates a network of cryptocurrency kiosks across North America, enabling customers to buy and sell cryptocurrencies like Bitcoin, Litecoin, and Ethereum. They also offer cryptocurrency sales through retail locations using their BDCheckout product, as well as online through over-the-counter trades. The company is based in Atlanta, Georgia, and is a subsidiary of BT Assets, Inc.

Lufax, Bitcoin, Finance