Lufax Holding Ltd. Sponsored ADR (LU) vs World Acceptance Corporation (WRLD)

Lufax Holding Ltd. Sponsored ADR and World Acceptance Corporation are both Credit Services companies. Lufax Holding Ltd. Sponsored ADR and World Acceptance Corporation are of similar size ($723.6M and $673.1M). Lufax Holding Ltd. Sponsored ADR has negative trailing earnings, so its P/E is not meaningful; World Acceptance Corporation trades at 13.9×. World Acceptance Corporation grew revenue faster over the last twelve months: 4.53% against −10.8%. World Acceptance Corporation has the higher net margin (8.35% vs −16.4%) and the lower return on invested capital (−1.31% vs 9.97%). Across the 17 metrics below, World Acceptance Corporation leads on 10 and Lufax Holding Ltd. Sponsored ADR on 7.

Valuation

Metric LU WRLD Credit Services median
P/E n/m 13.94 8.96
P/S 2.12 1.13 1.00
P/B 0.62 1.86 1.23
Price to free cash flow n/m 2.61 2.55
EV/EBITDA — — —
EV/Sales — — —
Earnings yield (51.59%) 7.17% 7.17%
Free cash flow yield (5.04%) 38.33% 11.75%

Profitability

Metric LU WRLD Credit Services median
Gross margin 100.00% 100.00% 76.61%
Operating margin 55.22% 18.91% 0.34%
Net margin (16.39%) 8.35% 8.35%
Free cash flow margin (10.12%) 0.00% 8.73%
Return on equity (4.68%) 0.00% 9.05%
Return on assets (1.88%) 4.64% 1.94%
Return on invested capital 9.97% (1.31%) 4.56%

Growth

Metric LU WRLD Credit Services median
Revenue growth (TTM) (10.79%) 4.53% 4.49%
EPS growth (last fiscal year) 55.84% (57.24%) 21.94%
Revenue growth, 5-year CAGR (12.93%) 2.08% 9.22%
Net income growth, 5-year CAGR 0.00% (17.09%) 0.00%

Health

Metric LU WRLD Credit Services median
Debt to equity 0.99 1.44 0.69
Current ratio 1.69 14.38 1.26
Net debt to EBITDA (1.19) 3.46 0.11

Dividend

Metric LU WRLD Credit Services median
Dividend yield 0.00% — 1.64%
Payout ratio — — 0.21

Size

Metric LU WRLD Credit Services median
Market cap 723.63m 673.11m 759.73m

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