Comparing Qifu Technology (NASDAQ:QFIN) and SHF (NASDAQ:SHFS)

Qifu Technology (NASDAQ:QFIN) and SHF (NASDAQ:SHFS) are both companies operating in the business services sector. Investors often seek to understand which of the two represents a more promising investment opportunity. This article will explore the key differences and similarities between Qifu Technology and SHF, focusing on factors such as volatility and risk, profitability, ownership structure, analyst recommendations, earnings, and overall valuation.

Volatility & Risk

When analyzing volatility, Qifu Technology has a beta of 0.64. This indicates that its stock is 36% less volatile than the S&P 500 index. On the other hand, SHF exhibits an even lower beta of 0.3, suggesting its stock is 70% less volatile than the S&P 500. This means that investors may experience more stable share price movements with SHF compared to Qifu Technology.

Profitability

We can compare the profitability of both companies by looking at their net margins, return on equity, and return on assets. Below is a breakdown of these metrics:

	Net Margins	Return on Equity	Return on Assets
Qifu Technology	31.82%	24.39%	11.68%
SHF	36.34%	10.24%	5.66%

From the data, it’s clear that while SHF leads in net margins, Qifu Technology has a significantly higher return on equity and assets, indicating it can utilize its equity more effectively to generate profits.

Insider & Institutional Ownership

Ownership structure reflects investors' confidence in the companies. For Qifu Technology, 74.8% of its shares are held by institutional investors, which indicates strong market support. In contrast, SHF has only 29.2% of its shares owned by institutional investors. Additionally, insiders own 17.1% of Qifu Technology while a larger proportion of SHF's shares, 60.5%, are held by insiders. A higher level of institutional ownership can suggest a belief in long-term success relative to the market.

Analyst Recommendations

Recent analyst evaluations reveal important insights about each company. The following table illustrates the ratings assigned to both Qifu Technology and SHF:

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Qifu Technology	0	0	1	0	3.00
SHF	0	0	0	0	0.00

The consensus price target for Qifu Technology stands at $37.50, indicating a potential downside of 3.03%. The overall sentiment suggests that Qifu Technology is viewed more favorably than SHF by analysts.

Earnings & Valuation

Evaluating the earnings profiles and valuations of both companies allows us to gauge their financial health better. The following table compares their gross revenue, net income, and earnings per share:

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Qifu Technology	$14.03 billion	0.44	$603.58 million	$4.94	7.83
SHF	$22.21 million	1.09	-$17.28 million	$0.17	2.56

In summary, Qifu Technology significantly outperforms SHF in terms of revenue and net income. However, SHF's lower price-to-earnings ratio may appeal to value investors looking for a cheaper entry point.

Conclusion

Upon review, Qifu Technology outperforms SHF in 11 out of the 14 factors analyzed, highlighting its strength as a stock. Investors seeking stability and growth may find Qifu Technology the more attractive option based on this detailed comparison.

About Qifu Technology

Qifu Technology, Inc., operates a credit technology platform in China under the 360 Jietiao brand. It connects borrowers with financial institutions for services such as customer acquisition and risk assessments. Founded in 2016, the company rebranded from 360 DigiTech, Inc. to Qifu Technology, Inc. in 2023.

About SHF

SHF Holdings, Inc. provides financial services tailored to the cannabis industry. With a range of services from business accounts to commercial lending, SHF assists cannabis businesses in accessing necessary financial services. Established in 2015, SHF operates out of Golden, Colorado.

technology, finance, stocks