Financial Analysis: Lufax (NYSE:LU) vs. The9 (NASDAQ:NCTY)

The9 (NASDAQ:NCTY) and Lufax (NYSE:LU) are both computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their dividends, earnings, analyst recommendations, institutional ownership, risk, profitability and valuation.

Analyst Recommendations

This is a summary of recent ratings and price targets for The9 and Lufax, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
The9	0	0	0	0	N/A
Lufax	1	3	2	0	2.17

Lufax has a consensus price target of $6.91, indicating a potential upside of 47.11%. Given Lufax’s higher possible upside, analysts plainly believe Lufax is more favorable than The9.

Volatility & Risk

The9 has a beta of 1.88, meaning that its share price is 88% more volatile than the S&P 500. Comparatively, Lufax has a beta of 0.82, meaning that its share price is 18% less volatile than the S&P 500.

Profitability

This table compares The9 and Lufax’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
The9	N/A	N/A	N/A
Lufax	-2.17%	-0.72%	-0.27%

Institutional & Insider Ownership

0.5% of The9 shares are owned by institutional investors. Comparatively, 69.1% of Lufax shares are owned by institutional investors. 30.8% of The9 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.

Earnings & Valuation

This table compares The9 and Lufax’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
The9	$25.22 million	1.44	$2.82 million	N/A	N/A
Lufax	$4.82 billion	0.56	$125.31 million	($0.14)	-33.57

Lufax has higher revenue and earnings than The9.

Summary

The9 beats Lufax on 6 of the 11 factors compared between the two stocks.

About The9

The9 Limited, together with its subsidiaries, operates as Internet company in the People's Republic of China and internationally. It also involves in the operation of cryptocurrency mining and Non-Fungible Token platform NFTSTAR, a NFT trading and community platform that provides users with purchase, trade, and interactive activities. The company was formerly known as GameNow.net Limited and changed its name to The9 Limited in February 2004. The9 Limited was incorporated in 1999 and is headquartered in Shanghai, the People's Republic of China.

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.