Lufax (NYSE:LU) and Stronghold Digital Mining (NASDAQ:SDIG) Head to Head Contrast

Lufax (NYSE:LU) and Stronghold Digital Mining (NASDAQ:SDIG) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their profitability, earnings, valuation, institutional ownership, dividends, analyst recommendations and risk.

Institutional and Insider Ownership

69.1% of Lufax shares are held by institutional investors. Comparatively, 19.3% of Stronghold Digital Mining shares are held by institutional investors. 47.6% of Stronghold Digital Mining shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Lufax	2.59%	0.94%	0.32%
Stronghold Digital Mining	-40.57%	10.70%	4.09%

Analyst Recommendations

This is a breakdown of current ratings and target prices for Lufax and Stronghold Digital Mining, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lufax	1	3	2	0	2.17
Stronghold Digital Mining	0	0	2	0	3.00

Lufax presently has a consensus target price of $6.91, indicating a potential upside of 69.05%. Stronghold Digital Mining has a consensus target price of $7.83, indicating a potential upside of 251.27%. Given Stronghold Digital Mining’s stronger consensus rating and higher possible upside, analysts plainly believe Stronghold Digital Mining is more favorable than Lufax.

Risk & Volatility

Lufax has a beta of 0.88, indicating that its stock price is 12% less volatile than the S&P 500. Comparatively, Stronghold Digital Mining has a beta of 2.68, indicating that its stock price is 168% more volatile than the S&P 500.

Earnings and Valuation

This table compares Lufax and Stronghold Digital Mining’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lufax	$4.82 billion	0.49	$125.31 million	$0.23	17.78
Stronghold Digital Mining	$74.97 million	0.45	-$71.40 million	($11.57)	-0.19

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

About Lufax

Lufax Holding Ltd operates a technology-empowered personal financial services platform in China. The company offers loan products, including unsecured loans and secured loans, as well as consumer finance loans. It also provides wealth management platforms, such as Lufax (Lu.com), Lu International (Singapore), and Lu International (Hong Kong) to the middle class and affluent investors to invest in products and portfolios; retail credit facilitation services platform that offers small business owners with lending solutions; and technology empowerment solutions for financial institutions. The company was founded in 2005 and is headquartered in Shanghai, China.

About Stronghold Digital Mining

Stronghold Digital Mining, Inc., a crypto asset mining company, focuses on Bitcoin mining in the United States. It operates in two segments, Energy Operations and Cryptocurrency Operations. It also owns and operates coal refuse power generation facilities; and provides environmental remediation and reclamation services. The company was incorporated in 2021 and is headquartered in New York, New York.