Critical Comparison: MDB Capital (NASDAQ:MDBH) versus Lufax (NYSE:LU)

MDB Capital (NASDAQ:MDBH) and Lufax (NYSE:LU) are both small-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, valuation, profitability, institutional ownership, analyst recommendations, risk and dividends.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
MDB Capital	N/A	-36.73%	-31.99%
Lufax	-2.17%	-0.72%	-0.27%

Insider & Institutional Ownership

0.4% of MDB Capital shares are held by institutional investors. Comparatively, 69.1% of Lufax shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for MDB Capital and Lufax, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MDB Capital	0	0	0	0	N/A
Lufax	1	3	0	0	1.75

Lufax has a consensus target price of $5.68, indicating a potential upside of 144.30%. Given Lufax’s higher probable upside, analysts plainly believe Lufax is more favorable than MDB Capital.

Earnings & Valuation

This table compares MDB Capital and Lufax’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MDB Capital	$5.99 million	55.58	-$6.97 million	N/A	N/A
Lufax	$4.82 billion	0.28	$125.31 million	($0.14)	-16.61

Lufax has higher revenue and earnings than MDB Capital.

Summary

Lufax beats MDB Capital on 6 of the 8 factors compared between the two stocks.

About MDB Capital

MDB Capital Holdings, LLC, through its subsidiaries, primarily operates as a broker-dealer. The company operates through two segments, Broker Dealer & Intellectual Property Service, and Technology Development. The Broker Dealer & Intellectual Property Service segment operates as a full-service broker dealer that focuses on conducting private and public securities offerings, as well as providing research services for investment banking due diligence. The Technology Development segment engages in the synthetic biology technology development business. The company was founded in 1997 and is based in Addison, 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.