Lufax (NYSE:LU) versus PROG (NYSE:PRG) Head to Head Survey

PROG (NYSE:PRG) and Lufax (NYSE:LU) are both small-cap finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their risk, institutional ownership, analyst recommendations, earnings, profitability, dividends and valuation.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for PROG and Lufax, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PROG	0	3	6	1	2.80
Lufax	2	0	1	0	1.67

PROG currently has a consensus price target of $49.44, suggesting a potential upside of 7.97%. Lufax has a consensus price target of $2.00, suggesting a potential upside of 32.89%. Given Lufax’s higher probable upside, analysts clearly believe Lufax is more favorable than PROG.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
PROG	5.57%	21.88%	9.15%
Lufax	N/A	N/A	N/A

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PROG	$2.41 billion	0.76	$146.79 million	$3.62	12.65
Lufax	$3.77 billion	0.35	-$291.79 million	($0.78)	-1.93

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

Insider and Institutional Ownership

97.9% of PROG shares are held by institutional investors. Comparatively, 69.1% of Lufax shares are held by institutional investors. 3.7% of PROG shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Volatility & Risk

PROG has a beta of 1.79, suggesting that its share price is 79% more volatile than the S&P 500. Comparatively, Lufax has a beta of 0.81, suggesting that its share price is 19% less volatile than the S&P 500.

Summary

PROG beats Lufax on 13 of the 15 factors compared between the two stocks.

About PROG

PROG Holdings, Inc. (NYSE:PRG) is a financial technology holding company based in Salt Lake City, Utah with three business segments: Progressive Leasing, which offers lease-to-own transactions primarily to credit-challenged consumers through e-commerce and point-of-sale retail partners, via online, mobile, and in-store solutions; Vive Financial, which provides consumers who may not qualify for traditional prime lending with a variety of second-look, revolving credit products through private label and branded credit cards; and Four Technologies, which provides consumers of all credit backgrounds Buy Now, Pay Later (BNPL) options through four interest-free installments via its platform, Four.

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.