Financial Contrast: Core Scientific (NASDAQ:CORZ) versus Lufax (NYSE:LU)

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

Analyst Recommendations

This is a summary of recent recommendations for Lufax and Core Scientific, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lufax	1	2	0	0	1.67
Core Scientific	2	3	15	1	2.71

Lufax presently has a consensus target price of $2.00, indicating a potential upside of 38.41%. Core Scientific has a consensus target price of $28.83, indicating a potential upside of 11.52%. Given Lufax’s higher probable upside, equities research analysts clearly believe Lufax is more favorable than Core Scientific.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lufax	$3.77 billion	0.33	-$291.79 million	($0.78)	-1.85
Core Scientific	$319.02 million	25.76	-$288.62 million	($1.14)	-22.68

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

Institutional & Insider Ownership

69.1% of Lufax shares are owned by institutional investors. 1.7% of Core Scientific shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Volatility and Risk

Lufax has a beta of 0.76, meaning that its share price is 24% less volatile than the S&P 500. Comparatively, Core Scientific has a beta of 5.49, meaning that its share price is 449% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Lufax	N/A	N/A	N/A
Core Scientific	-342.42%	N/A	-50.92%

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.

About Core Scientific

Core Scientific, Inc. provides digital asset mining services in North America. It operates through two segments, Mining and Hosting. The company offers blockchain infrastructure, software solutions, and services; and operates data center mining facilities. It also mines digital assets for its own account; and provides hosting services for other large bitcoin miners, which include deployment, monitoring, trouble shooting, optimization, and maintenance of its customers' digital asset mining equipment. In addition, the company provides electrical power, repair, and other infrastructure services to operate, maintain, and earn digital assets; and sells mining equipment to customers. Core Scientific, Inc. was founded in 2017 and is headquartered in Dover, Delaware.