Comparing AMTD Digital (NYSE:HKD) and Lufax (NYSE:LU)

AMTD Digital (NYSE:HKD) and Lufax (NYSE:LU) are both small-cap business services companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, valuation, profitability, analyst recommendations, institutional ownership, risk and dividends.

Valuation and Earnings

This table compares AMTD Digital and Lufax’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AMTD Digital	$33.07 million	21.54	$41.74 million	N/A	N/A
Lufax	$25.36 billion	0.05	$125.31 million	($0.14)	-16.50

Lufax has higher revenue and earnings than AMTD Digital.

Analyst Ratings

This is a breakdown of recent recommendations for AMTD Digital and Lufax, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AMTD Digital	0	0	0	0	N/A
Lufax	1	3	0	0	1.75

Lufax has a consensus price target of $5.68, indicating a potential upside of 145.89%. Given Lufax’s higher possible upside, analysts plainly believe Lufax is more favorable than AMTD Digital.

Volatility & Risk

AMTD Digital has a beta of 2.45, suggesting that its stock price is 145% more volatile than the S&P 500. Comparatively, Lufax has a beta of 0.82, suggesting that its stock price is 18% less volatile than the S&P 500.

Profitability

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

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

Insider & Institutional Ownership

5.8% of AMTD Digital shares are owned by institutional investors. Comparatively, 69.1% of Lufax shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

AMTD Digital beats Lufax on 5 of the 9 factors compared between the two stocks.

About AMTD Digital

AMTD Digital Inc., through its subsidiaries, designs and develops a digital platform to provide financial, media, content and marketing, and investment solutions in Asia. The company operates through Digital Solutions ServicesFinancial Services, Digital Solutions ServicesNon Financial Services, Digital Media, Content, and Marketing Services, and Digital Investments segments. It offers deposit, personal loan, credit card, fund transfer, cross border remittance, insurance, and other payment services. In addition, the company operates SpiderNet ecosystem, a platform to enhance their investor communication, investor relations, and corporate communication to enhance their valuation. Further, it offers movies, podcasts, webinars, and videos through online media platforms. Additionally, the company invests in hotel related activities. AMTD Digital Inc. was incorporated in 2019 and is based in Paris, France. AMTD Digital Inc. operates as a subsidiary of AMTD IDEA Group.

About Lufax

Lufax Holding Ltd operates as a financial service empowering institution for small and micro businesses in China. The company offers loan products, including general unsecured loans and secured loans, as well as consumer finance loans. It also provides wealth management products, such as asset management plans, mutual fund products, private investment fund products, and trust products. The company was founded in 2005 and is headquartered in Shanghai, China.