Contrasting LexinFintech (NASDAQ:LX) and Abits Group (NASDAQ:ABTS)

Abits Group (NASDAQ:ABTS) and LexinFintech (NASDAQ:LX) are both small-cap business services companies, but which is the superior business? We will compare the two companies based on the strength of their institutional ownership, earnings, profitability, analyst recommendations, dividends, valuation and risk.

Institutional & Insider Ownership

0.2% of Abits Group shares are owned by institutional investors. 6.7% of Abits Group shares are owned by company insiders. Comparatively, 27.8% of LexinFintech shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Abits Group	N/A	N/A	N/A
LexinFintech	7.02%	9.63%	3.98%

Risk & Volatility

Abits Group has a beta of 2.76, suggesting that its share price is 176% more volatile than the S&P 500. Comparatively, LexinFintech has a beta of 0.53, suggesting that its share price is 47% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings for Abits Group and LexinFintech, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Abits Group	0	0	0	0	N/A
LexinFintech	0	1	0	0	2.00

LexinFintech has a consensus target price of $2.66, indicating a potential upside of 53.76%. Given LexinFintech’s higher possible upside, analysts plainly believe LexinFintech is more favorable than Abits Group.

Valuation and Earnings

This table compares Abits Group and LexinFintech’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Abits Group	$1.68 million	11.63	-$12.59 million	N/A	N/A
LexinFintech	$13.32 billion	0.02	$150.14 million	$0.76	2.28

LexinFintech has higher revenue and earnings than Abits Group.

Summary

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

About Abits Group

Abits Group Inc., a digital company, engages in the provision of bitcoin mining and related services in the United States. The company was formerly known as Moxian (BVI) Inc and changed its name to Abits Group Inc. in November 2023. Abits Group Inc. was incorporated in 2021 and is based in Tsim Sha Tsui, Hong Kong.

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.