SHF (NASDAQ:SHFS) versus Qifu Technology (NASDAQ:QFIN) Financial Comparison

SHF (NASDAQ:SHFS) and Qifu Technology (NASDAQ:QFIN) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, dividends, valuation, profitability, risk, analyst recommendations and institutional ownership.

Volatility & Risk

SHF has a beta of 0.3, meaning that its share price is 70% less volatile than the S&P 500. Comparatively, Qifu Technology has a beta of 0.64, meaning that its share price is 36% less volatile than the S&P 500.

Valuation & Earnings

This table compares SHF and Qifu Technology”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SHF	$22.21 million	1.06	-$17.28 million	$0.17	2.48
Qifu Technology	$14.03 billion	0.44	$603.58 million	$4.94	7.82

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

Institutional and Insider Ownership

29.2% of SHF shares are held by institutional investors. Comparatively, 74.8% of Qifu Technology shares are held by institutional investors. 60.5% of SHF shares are held by insiders. Comparatively, 17.1% of Qifu Technology shares are held 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 SHF and Qifu Technology’s net margins, return on equity and return on assets.

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

Analyst Recommendations

This is a breakdown of recent ratings and price targets for SHF and Qifu Technology, as provided by MarketBeat.com.

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

Qifu Technology has a consensus price target of $37.50, suggesting a potential downside of 2.87%. Given Qifu Technology’s stronger consensus rating and higher probable upside, analysts clearly believe Qifu Technology is more favorable than SHF.

Summary

Qifu Technology beats SHF on 11 of the 14 factors compared between the two stocks.

About SHF

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 Golden, Colorado. SHF Holdings, Inc. operates as a subsidiary of Partner Colorado Credit Union.

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.