Qifu Technology (NASDAQ:QFIN – Get Free Report) and Burford Capital (NYSE:BUR – Get Free Report) are both business services companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, institutional ownership, earnings, dividends, valuation, profitability and analyst recommendations.
Dividends
Qifu Technology pays an annual dividend of $1.14 per share and has a dividend yield of 5.6%. Burford Capital pays an annual dividend of $0.12 per share and has a dividend yield of 0.9%. Qifu Technology pays out 29.5% of its earnings in the form of a dividend. Burford Capital pays out 8.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
Profitability
This table compares Qifu Technology and Burford Capital’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Qifu Technology | 26.80% | 20.96% | 9.89% |
| Burford Capital | 42.81% | 10.61% | 5.70% |
Valuation and Earnings
This table compares Qifu Technology and Burford Capital’s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Qifu Technology | $2.29 billion | 1.44 | $603.58 million | $3.86 | 5.30 |
| Burford Capital | $1.09 billion | N/A | $610.52 million | $1.43 | 9.52 |
Burford Capital has lower revenue, but higher earnings than Qifu Technology. Qifu Technology is trading at a lower price-to-earnings ratio than Burford Capital, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of recent recommendations for Qifu Technology and Burford Capital, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Qifu Technology | 0 | 0 | 2 | 0 | 3.00 |
| Burford Capital | 0 | 0 | 3 | 0 | 3.00 |
Qifu Technology currently has a consensus target price of $24.85, suggesting a potential upside of 21.52%. Burford Capital has a consensus target price of $20.17, suggesting a potential upside of 48.07%. Given Burford Capital’s higher possible upside, analysts plainly believe Burford Capital is more favorable than Qifu Technology.
Insider & Institutional Ownership
74.8% of Qifu Technology shares are held by institutional investors. 17.1% of Qifu Technology shares are held by insiders. Comparatively, 0.2% of Burford Capital shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Risk & Volatility
Qifu Technology has a beta of 0.61, indicating that its stock price is 39% less volatile than the S&P 500. Comparatively, Burford Capital has a beta of 0.58, indicating that its stock price is 42% less volatile than the S&P 500.
Summary
Qifu Technology beats Burford Capital on 8 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 Burford Capital
Burford Capital Limited provides legal finance products and services worldwide. The company operates through two segments, Capital Provision, and Asset Management and Other Provision. The Capital Provision segment provides capital to the legal industry or in connection with legal matters directly and through investment in private funds; legal risk management services; lower risk legal finance business focusing on pre-settlement litigation matters with lower risk and lower expected returns; post-settlement finance; and complex strategies in which it acts as a principal and acquires assets that are mispriced. The Asset Management and Other Services segment provides services to the legal industry, including litigation insurance. Burford Capital Limited was incorporated in 2009 and is based in Saint Peter Port, Guernsey.
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