Contrasting Atlanticus (NASDAQ:ATLC) and Qfin (NASDAQ:QFIN)

Atlanticus (NASDAQ:ATLC) and Qfin (NASDAQ:QFIN) are both small-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, dividends, earnings and risk.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Atlanticus	7.65%	27.37%	2.48%
Qfin	22.23%	15.23%	6.60%

Volatility & Risk

Atlanticus has a beta of 1.8, meaning that its share price is 80% more volatile than the S&P 500. Comparatively, Qfin has a beta of 0.6, meaning that its share price is 40% less volatile than the S&P 500.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Atlanticus	0	2	5	1	2.88
Qfin	3	4	1	0	1.75

Atlanticus currently has a consensus price target of $127.86, indicating a potential upside of 61.23%. Qfin has a consensus price target of $12.29, indicating a potential upside of 138.61%. Given Qfin’s higher probable upside, analysts plainly believe Qfin is more favorable than Atlanticus.

Earnings and Valuation

This table compares Atlanticus and Qfin”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Atlanticus	$1.97 billion	0.62	$122.20 million	$11.35	6.99
Qfin	$2.75 billion	0.23	$856.52 million	$4.16	1.24

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

Insider & Institutional Ownership

14.2% of Atlanticus shares are owned by institutional investors. Comparatively, 74.8% of Qfin shares are owned by institutional investors. 51.0% of Atlanticus shares are owned by insiders. Comparatively, 17.1% of Qfin shares are owned by 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.

Summary

Atlanticus beats Qfin on 9 of the 15 factors compared between the two stocks.

About Atlanticus

Atlanticus Holdings Corporation is a financial technology and consumer finance company that provides credit products to consumers, including people who may have limited access to traditional credit. It works with banks, retailers and other partners to offer credit cards, installment loans and point-of-sale financing. The company’s offerings include general-purpose and private-label credit cards, as well as financing for purchases in areas such as healthcare and home improvement. Atlanticus also provides financing solutions through relationships with auto dealers and other businesses.

About Qfin

Qifu Technology, Inc. (NASDAQ: QFIN), formerly known as 360 DigiTech, operates a digital platform in China that connects consumers seeking credit with financial institutions. The company uses technology and data analysis to support credit assessment and loan matching. Its services include helping partner institutions acquire and assess borrowers, facilitating loan applications and providing support after loans are originated. Qifu also offers technology solutions to financial institutions to assist with their consumer lending operations.