LexinFintech (NASDAQ:LX) versus SHF (NASDAQ:SHFS) Financial Contrast

LexinFintech (NASDAQ:LX – Get Rating) and SHF (NASDAQ:SHFS – Get Rating) are both small-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, profitability, earnings, institutional ownership and dividends.

Insider & Institutional Ownership

15.0% of LexinFintech shares are owned by institutional investors. Comparatively, 82.0% of SHF shares are owned by institutional investors. 27.8% of LexinFintech shares are owned by insiders. Comparatively, 17.7% of SHF shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares LexinFintech and SHF’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
LexinFintech	9.58%	12.72%	4.74%
SHF	N/A	6.94%	1.88%

Risk & Volatility

LexinFintech has a beta of 0.7, indicating that its share price is 30% less volatile than the S&P 500. Comparatively, SHF has a beta of 0.16, indicating that its share price is 84% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and price targets for LexinFintech and SHF, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LexinFintech	0	0	3	0	3.00
SHF	0	0	1	0	3.00

LexinFintech currently has a consensus target price of $2.85, suggesting a potential upside of 26.11%. SHF has a consensus target price of $1.50, suggesting a potential upside of 226.09%. Given SHF’s higher possible upside, analysts clearly believe SHF is more favorable than LexinFintech.

Earnings & Valuation

This table compares LexinFintech and SHF’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
LexinFintech	$1.43 billion	0.29	$118.85 million	$0.85	2.66
SHF	$9.48 million	2.00	-$35.13 million	N/A	N/A

LexinFintech has higher revenue and earnings than SHF.

Summary

LexinFintech beats SHF on 8 of the 11 factors compared between the two stocks.

About LexinFintech

(Get Rating)

Lexinfintech Holdings Ltd. engages in the business of matching consumers with credit needs to its financial institution partners through its proprietary platform and mobile application. The company was founded by Wen Jie Xiao and Qian Qiao on November 22, 2013 and is headquartered in Shenzhen, China.

About SHF

(Get Rating)

SHF Holdings, Inc., through its subsidiaries, provides access to banking, lending, and other financial services to financial institutions serving the cannabis industry. The company, through its proprietary platform, offers access to business checking and savings accounts, cash management accounts, savings and investment options, commercial lending, courier services, remote deposit services, automated clearing house payments and origination, and wire payments. Its services allow cannabis related businesses to obtain services from financial institutions that allow them to run their business with enhanced financial insight into their business and access to resources. The company was founded in 2015 and is based in Arvada, Colorado.