Comparing Dave (NASDAQ:DAVE) and Qfin (NASDAQ:QFIN)

Dave (NASDAQ:DAVE) and Qfin (NASDAQ:QFIN) are both finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, risk, analyst recommendations, profitability, institutional ownership, earnings and valuation.

Analyst Recommendations

This is a summary of recent ratings and price targets for Dave and Qfin, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dave	0	3	14	0	2.82
Qfin	4	3	1	0	1.62

Dave currently has a consensus price target of $433.25, indicating a potential upside of 22.54%. Qfin has a consensus price target of $12.29, indicating a potential upside of 56.14%. Given Qfin’s higher possible upside, analysts plainly believe Qfin is more favorable than Dave.

Risk & Volatility

Dave has a beta of 3.83, indicating that its share price is 283% more volatile than the S&P 500. Comparatively, Qfin has a beta of 0.57, indicating that its share price is 43% less volatile than the S&P 500.

Earnings & Valuation

This table compares Dave and Qfin”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dave	$554.20 million	8.14	$195.87 million	$15.42	22.93
Qfin	$2.75 billion	0.35	$856.52 million	$4.16	1.89

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

Insider and Institutional Ownership

18.0% of Dave shares are held by institutional investors. Comparatively, 74.8% of Qfin shares are held by institutional investors. 23.6% of Dave shares are held by company insiders. Comparatively, 17.1% of Qfin shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Dave and Qfin’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Dave	34.58%	77.46%	40.44%
Qfin	22.23%	15.23%	6.60%

Summary

Dave beats Qfin on 10 of the 14 factors compared between the two stocks.

About Dave

Dave, Inc. is a digital banking service. Its products include a budgeting tool to help members manage their upcoming bills to avoid overspending, cash advances through its flagship ExtraCash product to help members avoid punitive overdraft fees, a Side Hustle product, where Dave helps connect members with supplemental work opportunities, and Dave Banking, a modern checking account experience with valuable tools for building long-term financial health. The company was founded by Jason Wilk, Paras Chitrakar, and John Wolanin in October 2015 and is headquartered in Los Angeles, CA.

About Qfin

Qifu Technology, Inc., through its subsidiaries, operates credit-tech platform under the 360 Jietiao brand in the People's Republic of China. It provides credit-driven services that matches borrowers with financial institutions to conduct customer acquisition, initial and credit screening, advanced risk assessment, credit assessment, fund matching, and other post-facilitation services; and platform services, including loan facilitation and post-facilitation services to financial institution partners under intelligence credit engine, referral services, and risk management software-as-a-service. The company also offers e-commerce loans, enterprise loans, and invoice loans to SME owners. It serves financial institutions, consumers, and small- and micro-enterprises. The company was formerly known as 360 DigiTech, Inc. and changed its name to Qifu Technology, Inc. in March 2023. The company was founded in 2016 and is headquartered in Shanghai, the People's Republic of China.