Reviewing Qfin (NASDAQ:QFIN) & Dave (NASDAQ:DAVE)

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

Analyst Ratings

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

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

Dave currently has a consensus target price of $433.25, indicating a potential upside of 35.10%. Qfin has a consensus target price of $12.29, indicating a potential upside of 74.30%. Given Qfin’s higher probable upside, analysts plainly believe Qfin is more favorable than Dave.

Earnings and Valuation

This table compares Dave and Qfin”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dave	$554.20 million	7.38	$195.87 million	$15.42	20.80
Qfin	$2.75 billion	0.31	$856.52 million	$4.16	1.69

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.

Profitability

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

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

Volatility & Risk

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

Insider and Institutional Ownership

18.0% of Dave shares are owned by institutional investors. Comparatively, 74.8% of Qfin shares are owned by institutional investors. 23.6% of Dave shares are owned by company insiders. Comparatively, 17.1% of Qfin shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

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

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.

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.