Lufax (NYSE:LU) vs. PROG (NYSE:PRG) Head to Head Contrast

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

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 0.79, suggesting that its share price is 21% less volatile than the S&P 500.

Valuation & Earnings

This table compares PROG and Lufax”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PROG	$2.41 billion	0.73	$146.79 million	$3.62	12.12
Lufax	$23.11 billion	0.06	-$291.79 million	($0.78)	-2.02

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.

Dividends

PROG pays an annual dividend of $0.56 per share and has a dividend yield of 1.3%. Lufax pays an annual dividend of $0.12 per share and has a dividend yield of 7.6%. PROG pays out 15.5% of its earnings in the form of a dividend. Lufax pays out -15.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. PROG has increased its dividend for 2 consecutive years. Lufax is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Ratings

This is a breakdown of recent ratings and target prices 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 target price of $49.44, indicating a potential upside of 12.67%. Lufax has a consensus target price of $2.00, indicating a potential upside of 26.98%. Given Lufax’s higher possible upside, analysts plainly believe Lufax is more favorable than PROG.

Insider and Institutional Ownership

97.9% of PROG shares are owned by institutional investors. Comparatively, 69.1% of Lufax shares are owned by institutional investors. 3.7% of PROG shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

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

Summary

PROG beats Lufax on 14 of the 18 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.