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.
This table compares LexinFintech and SHF’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk & Volatility
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 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.
LexinFintech beats SHF on 8 of the 11 factors compared between the two stocks.
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.
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.
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