Reviewing Qfin (NASDAQ:QFIN) & XChange TEC.INC. (NASDAQ:XHG)

Qfin (NASDAQ:QFIN) and XChange TEC.INC. (NASDAQ:XHG) are both business services companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, analyst recommendations, risk, valuation, institutional ownership, profitability and dividends.

Risk and Volatility

Qfin has a beta of 0.43, meaning that its stock price is 57% less volatile than the S&P 500. Comparatively, XChange TEC.INC. has a beta of -1.02, meaning that its stock price is 202% less volatile than the S&P 500.

Insider & Institutional Ownership

74.8% of Qfin shares are owned by institutional investors. 17.1% of Qfin shares are owned by company insiders. Comparatively, 0.6% of XChange TEC.INC. shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Qfin and XChange TEC.INC.”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Qfin	$2.35 billion	1.06	$858.21 million	$6.86	2.55
XChange TEC.INC.	$41.09 million	0.00	-$32.32 million	N/A	N/A

Qfin has higher revenue and earnings than XChange TEC.INC..

Profitability

This table compares Qfin and XChange TEC.INC.’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Qfin	35.09%	28.73%	12.22%
XChange TEC.INC.	N/A	N/A	N/A

Analyst Recommendations

This is a summary of recent ratings for Qfin and XChange TEC.INC., as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Qfin	1	2	1	0	2.00
XChange TEC.INC.	1	0	0	0	1.00

Qfin presently has a consensus price target of $36.85, indicating a potential upside of 110.57%. Given Qfin’s stronger consensus rating and higher probable upside, research analysts clearly believe Qfin is more favorable than XChange TEC.INC..

Summary

Qfin beats XChange TEC.INC. on 12 of the 12 factors compared between the two stocks.

About Qfin

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 XChange TEC.INC.

XChange TEC.INC engages in the professional insurance agency business in the People’s Republic of China. The company provides a various insurance products underwritten by insurance companies, including state-owned property and casualty insurance companies, as well as various regional property and casualty insurance companies. It also offers automobile, life, health, group accident, and other property related insurances primarily to individual end consumers. In addition, the company operates a SaaS platform to offer comprehensive services to online customers. It sells insurance primarily through a network of external referral sources that include external registered sales representatives and strategic channel partners, as well as through the in-house sales force. The company was formerly known as FLJ Group Limited and changed its name to XChange TEC.INC in May 2024. XChange TEC.INC was founded in 2012 and is based in Shanghai, the People’s Republic of China.