Comparing Qfin (NASDAQ:QFIN) and Atlantic International (NASDAQ:CIRC)

Atlantic International (NASDAQ:CIRC) and Qfin (NASDAQ:QFIN) are both small-cap finance companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, analyst recommendations, dividends, institutional ownership, earnings, risk and valuation.

Analyst Recommendations

This is a breakdown of current ratings for Atlantic International and Qfin, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Atlantic International	1	0	0	1	2.50
Qfin	4	3	1	0	1.62

Qfin has a consensus target price of $12.29, indicating a potential upside of 116.73%. Given Qfin’s higher possible upside, analysts clearly believe Qfin is more favorable than Atlantic International.

Volatility and Risk

Atlantic International has a beta of 0.75, meaning that its share price is 25% less volatile than the S&P 500. Comparatively, Qfin has a beta of 0.55, meaning that its share price is 45% less volatile than the S&P 500.

Earnings & Valuation

This table compares Atlantic International and Qfin”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Atlantic International	$435.88 million	0.08	-$59.43 million	($2.11)	-0.14
Qfin	$13.27 billion	0.05	$856.52 million	$4.16	1.36

Qfin has higher revenue and earnings than Atlantic International. Atlantic International is trading at a lower price-to-earnings ratio than Qfin, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

74.8% of Qfin shares are held by institutional investors. 7.6% of Atlantic International shares are held by company insiders. Comparatively, 17.1% of Qfin shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Atlantic International and Qfin’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Atlantic International	-19.39%	N/A	-28.58%
Qfin	22.23%	15.23%	6.60%

Summary

Qfin beats Atlantic International on 11 of the 15 factors compared between the two stocks.

About Atlantic International

Atlantic International Corp., through its subsidiaries, operates as a staffing company servicing the commercial, professional, finance, direct placement, and managed service provider verticals. The company specializes in permanent, temporary, and temporary-to-permanent placement services in various areas, including accounting and finance, administrative and clerical, hospitality, information technology, legal, light industrial, and medical fields. It also provides productivity consulting and workforce management solutions. Atlantic International Corp. was founded in 2018 and is based in Englewood Cliffs, New Jersey.

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.