Contrasting Qifu Technology (NASDAQ:QFIN) and SHF (NASDAQ:SHFS)

Qifu Technology (NASDAQ:QFIN) and SHF (NASDAQ:SHFS) are both business services companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, earnings, valuation, risk, profitability, institutional ownership and analyst recommendations.

Volatility & Risk

Qifu Technology has a beta of 0.64, indicating that its share price is 36% less volatile than the S&P 500. Comparatively, SHF has a beta of 0.3, indicating that its share price is 70% less volatile than the S&P 500.

Profitability

This table compares Qifu Technology and SHF’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Qifu Technology	31.82%	24.39%	11.68%
SHF	36.34%	10.24%	5.66%

Insider & Institutional Ownership

74.8% of Qifu Technology shares are owned by institutional investors. Comparatively, 29.2% of SHF shares are owned by institutional investors. 17.1% of Qifu Technology shares are owned by insiders. Comparatively, 60.5% of SHF 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.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Qifu Technology and SHF, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Qifu Technology	0	0	1	0	3.00
SHF	0	0	0	0	0.00

Qifu Technology presently has a consensus price target of $37.50, suggesting a potential downside of 3.03%. Given Qifu Technology’s stronger consensus rating and higher probable upside, research analysts plainly believe Qifu Technology is more favorable than SHF.

Earnings & Valuation

This table compares Qifu Technology and SHF”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Qifu Technology	$14.03 billion	0.44	$603.58 million	$4.94	7.83
SHF	$22.21 million	1.09	-$17.28 million	$0.17	2.56

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

Summary

Qifu Technology beats SHF on 11 of the 14 factors compared between the two stocks.

About Qifu Technology

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.

About SHF

SHF Holdings, Inc., through its subsidiaries, provides access to banking, lending, and other financial services to financial institutions serving the cannabis industry. The company, through its proprietary platform, offers access to business checking and savings accounts, cash management accounts, savings and investment options, commercial lending, courier services, remote deposit services, automated clearing house payments and origination, and wire payments. Its services allow cannabis related businesses to obtain services from financial institutions that allow them to run their business with enhanced financial insight into their business and access to resources. The company was founded in 2015 and is based in Golden, Colorado. SHF Holdings, Inc. operates as a subsidiary of Partner Colorado Credit Union.