Head to Head Contrast: BitFuFu (NASDAQ:FUFU) versus LexinFintech (NASDAQ:LX)

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

Volatility and Risk

BitFuFu has a beta of 0.24, suggesting that its stock price is 76% less volatile than the S&P 500. Comparatively, LexinFintech has a beta of 0.66, suggesting that its stock price is 34% less volatile than the S&P 500.

Institutional and Insider Ownership

37.3% of BitFuFu shares are held by institutional investors. 35.0% of BitFuFu shares are held by company insiders. Comparatively, 27.8% of LexinFintech shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares BitFuFu and LexinFintech”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BitFuFu	$284.11 million	2.76	$10.49 million	N/A	N/A
LexinFintech	$1.84 billion	0.78	$150.14 million	$0.63	13.86

LexinFintech has higher revenue and earnings than BitFuFu.

Analyst Ratings

This is a breakdown of current recommendations and price targets for BitFuFu and LexinFintech, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BitFuFu	0	0	1	0	3.00
LexinFintech	0	0	1	0	3.00

BitFuFu currently has a consensus price target of $7.00, indicating a potential upside of 45.53%. Given BitFuFu’s higher possible upside, analysts clearly believe BitFuFu is more favorable than LexinFintech.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
BitFuFu	8.17%	40.15%	13.55%
LexinFintech	5.34%	7.47%	3.26%

Summary

BitFuFu beats LexinFintech on 7 of the 10 factors compared between the two stocks.

About BitFuFu

BitFuFu Inc. provides digital asset mining and cloud-mining services in Singapore. It also offers miner rental, and miner hosting and sales services to institutional customers and individual digital asset enthusiasts. The company is based in Singapore, Singapore.

About LexinFintech

LexinFintech Holdings Ltd., through its subsidiaries, provides online consumer finance services in the People's Republic of China. The company operates Fenqile.com, an online consumption and consumer finance platform that offers installment purchase and personal installment loans, as well as online direct sales with installment payment terms; and Le Hua Card, a scenario-based lending. It also provides technology-driven platform services for financial institution customers and partners to increase revenues, manage financial risks, enhance operating efficiency and service quality, enhance collections, and reduce overall costs; Maiya application, a location-based services shopping experience with buy-now and pay-later options; and Juzi Licai, an online investment platform. In addition, the company offers technical support and consulting, software development, financing guarantee, and financial technology services. The company was formerly known as Staging Finance Holding Ltd. and changed its name to LexinFintech Holdings Ltd. in March 2017. LexinFintech Holdings Ltd. was founded in 2013 and is headquartered in Shenzhen, the People's Republic of China.