Financial Survey: CleanSpark (NASDAQ:CLSK) vs. Qifu Technology (NASDAQ:QFIN)

Qifu Technology (NASDAQ:QFIN) and CleanSpark (NASDAQ:CLSK) are both mid-cap business services companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, analyst recommendations, dividends, risk, institutional ownership, profitability and valuation.

Profitability

This table compares Qifu Technology and CleanSpark’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Qifu Technology	31.82%	24.39%	11.68%
CleanSpark	16.07%	-2.61%	-2.24%

Institutional and Insider Ownership

74.8% of Qifu Technology shares are owned by institutional investors. Comparatively, 43.1% of CleanSpark shares are owned by institutional investors. 17.1% of Qifu Technology shares are owned by company insiders. Comparatively, 2.7% of CleanSpark shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Volatility and Risk

Qifu Technology has a beta of 0.59, indicating that its stock price is 41% less volatile than the S&P 500. Comparatively, CleanSpark has a beta of 4.2, indicating that its stock price is 320% more volatile than the S&P 500.

Earnings and Valuation

This table compares Qifu Technology and CleanSpark”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Qifu Technology	$14.03 billion	0.49	$603.58 million	$4.94	8.74
CleanSpark	$467.49 million	4.79	-$145.78 million	$0.11	72.45

Qifu Technology has higher revenue and earnings than CleanSpark. Qifu Technology is trading at a lower price-to-earnings ratio than CleanSpark, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current recommendations for Qifu Technology and CleanSpark, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Qifu Technology	0	0	1	0	3.00
CleanSpark	0	0	8	0	3.00

Qifu Technology presently has a consensus price target of $37.50, indicating a potential downside of 13.17%. CleanSpark has a consensus price target of $21.63, indicating a potential upside of 171.33%. Given CleanSpark’s higher possible upside, analysts plainly believe CleanSpark is more favorable than Qifu Technology.

Summary

Qifu Technology beats CleanSpark on 8 of the 13 factors compared between the two stocks.

About Qifu Technology

Qifu Technology, Inc., through its subsidiaries, operates credit-tech platform under the 360 Jietiao brand in the People's Republic of China. It provides credit-driven services that matches borrowers with financial institutions to conduct customer acquisition, initial and credit screening, advanced risk assessment, credit assessment, fund matching, and other post-facilitation services; and platform services, including loan facilitation and post-facilitation services to financial institution partners under intelligence credit engine, referral services, and risk management software-as-a-service. The company also offers e-commerce loans, enterprise loans, and invoice loans to SME owners. It serves financial institutions, consumers, and small- and micro-enterprises. The company was formerly known as 360 DigiTech, Inc. and changed its name to Qifu Technology, Inc. in March 2023. The company was founded in 2016 and is headquartered in Shanghai, the People's Republic of China.

About CleanSpark

CleanSpark, Inc. operates as a bitcoin miner in the Americas. It owns and operates data centers that primarily run on low-carbon power. Its infrastructure supports Bitcoin, a digital commodity and a tool for financial independence and inclusion. The company was formerly known as Stratean Inc. and changed its name to CleanSpark, Inc. in November 2016. CleanSpark, Inc. was incorporated in 1987 and is headquartered in Henderson, Nevada.