LU vs. BUR, WD, PWP, SII, CLSK, HUT, CORZ, LDI, WULF, and CCAP
Should you be buying Lufax stock or one of its competitors? The main competitors of Lufax include Burford Capital (BUR), Walker & Dunlop (WD), Perella Weinberg Partners (PWP), Sprott (SII), CleanSpark (CLSK), Hut 8 (HUT), Core Scientific (CORZ), loanDepot (LDI), TeraWulf (WULF), and Crescent Capital BDC (CCAP). These companies are all part of the "nondepository credit institutions" industry.
Burford Capital (NYSE:BUR) and Lufax (NYSE:LU) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, dividends, community ranking, media sentiment, risk, profitability, earnings and institutional ownership.
Burford Capital pays an annual dividend of $0.12 per share and has a dividend yield of 0.9%. Lufax pays an annual dividend of $0.25 per share and has a dividend yield of 5.8%. Burford Capital pays out 8.4% of its earnings in the form of a dividend. Lufax pays out -178.6% 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. Lufax is clearly the better dividend stock, given its higher yield and lower payout ratio.
In the previous week, Burford Capital had 2 more articles in the media than Lufax. MarketBeat recorded 4 mentions for Burford Capital and 2 mentions for Lufax. Burford Capital's average media sentiment score of 0.79 beat Lufax's score of -0.03 indicating that Lufax is being referred to more favorably in the news media.
69.1% of Lufax shares are owned by institutional investors. 0.2% of Burford Capital shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Burford Capital currently has a consensus target price of $19.00, suggesting a potential upside of 35.33%. Lufax has a consensus target price of $6.40, suggesting a potential upside of 48.84%. Given Burford Capital's higher possible upside, analysts clearly believe Lufax is more favorable than Burford Capital.
Lufax received 13 more outperform votes than Burford Capital when rated by MarketBeat users. However, 52.63% of users gave Burford Capital an outperform vote while only 43.40% of users gave Lufax an outperform vote.
Burford Capital has higher earnings, but lower revenue than Lufax. Lufax is trading at a lower price-to-earnings ratio than Burford Capital, indicating that it is currently the more affordable of the two stocks.
Burford Capital has a net margin of 42.81% compared to Burford Capital's net margin of -2.17%. Lufax's return on equity of 10.61% beat Burford Capital's return on equity.
Summary
Burford Capital beats Lufax on 11 of the 18 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding LU and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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