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

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

Earnings and Valuation

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

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

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.

Institutional and Insider Ownership

74.8% of Qfin shares are owned by institutional investors. Comparatively, 18.0% of Dave shares are owned by institutional investors. 17.1% of Qfin shares are owned by company insiders. Comparatively, 23.6% of Dave 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 Qfin and Dave’s net margins, return on equity and return on assets.

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

Analyst Recommendations

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

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

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

Volatility & Risk

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

Summary

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

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.

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.