Greenidge Generation (NASDAQ:GREE) vs. Lufax (NYSE:LU) Critical Review

Lufax (NYSE:LU) and Greenidge Generation (NASDAQ:GREE) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, analyst recommendations, earnings, valuation, profitability, dividends and institutional ownership.

Analyst Recommendations

This is a breakdown of recent recommendations for Lufax and Greenidge Generation, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lufax	1	3	2	0	2.17
Greenidge Generation	0	0	0	0	N/A

Lufax currently has a consensus price target of $6.91, suggesting a potential upside of 47.74%. Given Lufax’s higher possible upside, equities analysts clearly believe Lufax is more favorable than Greenidge Generation.

Volatility and Risk

Lufax has a beta of 0.88, indicating that its share price is 12% less volatile than the S&P 500. Comparatively, Greenidge Generation has a beta of 3.35, indicating that its share price is 235% more volatile than the S&P 500.

Valuation and Earnings

This table compares Lufax and Greenidge Generation’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lufax	$4.82 billion	0.56	$125.31 million	($0.14)	-33.43
Greenidge Generation	$70.39 million	0.39	-$29.51 million	($37.93)	-0.07

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

Profitability

This table compares Lufax and Greenidge Generation’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lufax	-2.17%	-0.72%	-0.27%
Greenidge Generation	-41.92%	N/A	-27.21%

Institutional and Insider Ownership

69.1% of Lufax shares are owned by institutional investors. Comparatively, 8.5% of Greenidge Generation shares are owned by institutional investors. 40.5% of Greenidge Generation shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Lufax beats Greenidge Generation on 9 of the 12 factors compared between the two stocks.

About Lufax

Lufax Holding Ltd operates a technology-empowered personal financial services platform in China. The company offers loan products, including unsecured loans and secured loans, as well as consumer finance loans. It also provides wealth management platforms, such as Lufax (Lu.com), Lu International (Singapore), and Lu International (Hong Kong) to the middle class and affluent investors to invest in products and portfolios; retail credit facilitation services platform that offers small business owners with lending solutions; and technology empowerment solutions for financial institutions. The company was founded in 2005 and is headquartered in Shanghai, China.

About Greenidge Generation

Greenidge Generation Holdings Inc. operates as an integrated cryptocurrency datacenter and power generation company. The company owns and operates cryptocurrency datacenters in New York and South Carolina. It also owns and operates a 106 MW nameplate natural gas power generation facility. The company was founded in 1937 and is headquartered in Dresden, New York.