Velocity Financial (VEL) Competitors

Lufax (NYSE:LU) and Velocity Financial (NYSE:VEL) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, dividends, community ranking, profitability, analyst recommendations, valuation, risk, institutional ownership and media sentiment.

Do institutionals & insiders hold more shares of LU or VEL?

69.1% of Lufax shares are owned by institutional investors. Comparatively, 97.5% of Velocity Financial shares are owned by institutional investors. 4.6% of Velocity Financial shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Does the media refer more to LU or VEL?

In the previous week, Lufax had 13 more articles in the media than Velocity Financial. MarketBeat recorded 15 mentions for Lufax and 2 mentions for Velocity Financial. Lufax's average media sentiment score of 0.57 beat Velocity Financial's score of 0.00 indicating that Lufax is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Lufax	6 Very Positive mention(s)	1 Positive mention(s)	6 Neutral mention(s)	1 Negative mention(s)	0 Very Negative mention(s)	Positive
Velocity Financial	0 Very Positive mention(s)	0 Positive mention(s)	2 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Neutral

Do analysts rate LU or VEL?

Lufax currently has a consensus price target of $2.98, indicating a potential upside of 5.31%. Velocity Financial has a consensus price target of $21.50, indicating a potential upside of 20.28%. Given Velocity Financial's stronger consensus rating and higher probable upside, analysts plainly believe Velocity Financial is more favorable than Lufax.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lufax	1 Sell rating(s)	2 Hold rating(s)	0 Buy rating(s)	0 Strong Buy rating(s)	1.67
Velocity Financial	1 Sell rating(s)	0 Hold rating(s)	3 Buy rating(s)	0 Strong Buy rating(s)	2.50

Does the MarketBeat Community believe in LU or VEL?

Velocity Financial received 78 more outperform votes than Lufax when rated by MarketBeat users. Likewise, 68.71% of users gave Velocity Financial an outperform vote while only 41.07% of users gave Lufax an outperform vote.

Company	Underperform	Outperform
Lufax	Outperform Votes 23 41.07%	Underperform Votes 33 58.93%
Velocity Financial	Outperform Votes 101 68.71%	Underperform Votes 46 31.29%

Which has stronger valuation & earnings, LU or VEL?

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

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lufax	$20.29B	0.12	$125.31M	-$0.77	-3.67
Velocity Financial	$211.74M	3.08	$52.27M	$1.92	9.31

Which has more volatility and risk, LU or VEL?

Lufax has a beta of 0.71, meaning that its share price is 29% less volatile than the S&P 500. Comparatively, Velocity Financial has a beta of 0.71, meaning that its share price is 29% less volatile than the S&P 500.

Is LU or VEL more profitable?

Velocity Financial has a net margin of 51.06% compared to Lufax's net margin of -12.75%. Velocity Financial's return on equity of 14.50% beat Lufax's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Lufax	-12.75%	-3.63%	-1.45%
Velocity Financial	51.06%	14.50%	1.41%

Summary

Velocity Financial beats Lufax on 13 of the 17 factors compared between the two stocks.