Lufax Holding Ltd. Sponsored ADR (LU) vs The Western Union Company (WU)

Lufax Holding Ltd. Sponsored ADR and The Western Union Company are both Credit Services companies. The Western Union Company is the larger, with a market value of $1.9B against $1.1B — 1.7× the size. Lufax Holding Ltd. Sponsored ADR has negative trailing earnings, so its P/E is not meaningful; The Western Union Company trades at 4.9×. The Western Union Company grew revenue faster over the last twelve months: −1.63% against −22.5%. The Western Union Company has the higher net margin (9.79% vs −13.3%) and the higher return on invested capital (14.9% vs 9.42%). Both pay a dividend; The Western Union Company yields more (7.89% vs 5.92%). Across the 21 metrics below, The Western Union Company leads on 11 and Lufax Holding Ltd. Sponsored ADR on 10.

Valuation

Metric LU WU Credit Services median
P/E n/m 4.94 9.64
P/S 0.27 0.48 0.87
P/B 0.08 2.11 1.16
Price to free cash flow 11.53 4.56 2.99
EV/EBITDA n/m 4.52 9.58
EV/Sales 0.00 0.92 2.32
Earnings yield (49.59%) 20.23% 6.72%
Free cash flow yield 8.67% 21.94% 12.33%

Profitability

Metric LU WU Credit Services median
Gross margin 100.00% 35.09% 77.13%
Operating margin 49.67% 15.91% 0.34%
Net margin (13.30%) 9.79% 9.25%
Free cash flow margin 2.34% 10.51% 13.03%
Return on equity (3.83%) 43.97% 8.49%
Return on assets (1.50%) 4.96% 2.29%
Return on invested capital 9.42% 14.91% 4.09%

Growth

Metric LU WU Credit Services median
Revenue growth (TTM) (22.46%) (1.63%) 4.62%
EPS growth (last fiscal year) 55.84% (44.53%) —
Revenue growth, 5-year CAGR (12.93%) (3.48%) 9.13%
Net income growth, 5-year CAGR 0.00% (7.66%) 0.00%

Health

Metric LU WU Credit Services median
Debt to equity 0.89 2.95 0.68
Current ratio 1.72 1.12 1.55
Net debt to EBITDA (1.19) 1.78 0.13

Dividend

Metric LU WU Credit Services median
Dividend yield 5.92% 7.89% 3.34%
Payout ratio 1.69 0.48 0.00

Size

Metric LU WU Credit Services median
Market cap 1.11b 1.89b 872.19m

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