Lufax (NYSE:LU) and Katapult (NASDAQ:KPLT) Critical Survey

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

Risk and Volatility

Katapult has a beta of 1.51, suggesting that its stock price is 51% more volatile than the S&P 500. Comparatively, Lufax has a beta of 0.81, suggesting that its stock price is 19% less volatile than the S&P 500.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Katapult	$291.76 million	0.10	$1.37 million	$1.37	4.13
Lufax	$3.77 billion	0.29	-$291.79 million	($0.61)	-2.09

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Katapult	3.60%	-26.41%	10.86%
Lufax	N/A	N/A	N/A

Institutional and Insider Ownership

26.8% of Katapult shares are owned by institutional investors. Comparatively, 69.1% of Lufax shares are owned by institutional investors. 8.0% of Katapult shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and price targets for Katapult and Lufax, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Katapult	1	0	0	0	1.00
Lufax	2	1	1	0	1.75

Lufax has a consensus price target of $1.70, indicating a potential upside of 33.33%. Given Lufax’s stronger consensus rating and higher possible upside, analysts clearly believe Lufax is more favorable than Katapult.

About Katapult

Katapult Holdings, Inc., an e-commerce focused financial technology company, provides e-commerce point-of-sale lease-purchase options for nonprime consumers in the United States. The company's technology platform provides nonprime consumers with a lease purchase option to enable them to obtain durable goods from its network of e-commerce retailers. It also offers Katapult Pay, a one-time use virtual card technology that makes lease purchasing and transactions. The company was formerly known as Cognical Holdings, Inc. and changed its name to Katapult Holdings, Inc. in February 2020. The company is headquartered in Plano, Texas.

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.