Critical Review: LexinFintech (NASDAQ:LX) and Sphere 3D (NASDAQ:ANY)

Sphere 3D (NASDAQ:ANY) and LexinFintech (NASDAQ:LX) are both small-cap computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, valuation, risk, analyst recommendations, earnings, dividends and institutional ownership.

Profitability

This table compares Sphere 3D and LexinFintech’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sphere 3D	-94.39%	-72.59%	-37.92%
LexinFintech	7.02%	9.63%	3.98%

Valuation and Earnings

This table compares Sphere 3D and LexinFintech’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sphere 3D	$25.83 million	0.62	-$23.41 million	($1.85)	-0.47
LexinFintech	$13.32 billion	0.02	$150.14 million	$0.76	2.16

LexinFintech has higher revenue and earnings than Sphere 3D. Sphere 3D is trading at a lower price-to-earnings ratio than LexinFintech, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current recommendations for Sphere 3D and LexinFintech, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sphere 3D	0	0	1	0	3.00
LexinFintech	0	1	0	0	2.00

Sphere 3D currently has a consensus price target of $4.00, suggesting a potential upside of 360.30%. LexinFintech has a consensus price target of $2.66, suggesting a potential upside of 62.20%. Given Sphere 3D’s stronger consensus rating and higher probable upside, research analysts clearly believe Sphere 3D is more favorable than LexinFintech.

Institutional & Insider Ownership

17.3% of Sphere 3D shares are held by institutional investors. 5.6% of Sphere 3D shares are held by insiders. Comparatively, 27.8% of LexinFintech shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Volatility & Risk

Sphere 3D has a beta of 2.85, suggesting that its share price is 185% more volatile than the S&P 500. Comparatively, LexinFintech has a beta of 0.53, suggesting that its share price is 47% less volatile than the S&P 500.

Summary

LexinFintech beats Sphere 3D on 8 of the 14 factors compared between the two stocks.

About Sphere 3D

Sphere 3D Corp. engages in the bitcoin mining business. It is involved with digital asset mining pool operators to provide computing power to the mining pools. The company is based in Stamford, Connecticut.

About LexinFintech

LexinFintech Holdings Ltd., through its subsidiaries, provides online consumer finance services in the People's Republic of China. The company operates Fenqile.com, an online consumption and consumer finance platform that offers installment purchase and personal installment loans, as well as online direct sales with installment payment terms; and Le Hua Card, a scenario-based lending. It also provides technology-driven platform services for financial institution customers and partners to increase revenues, manage financial risks, enhance operating efficiency and service quality, enhance collections, and reduce overall costs; Maiya application, a location-based services shopping experience with buy-now and pay-later options; and Juzi Licai, an online investment platform. In addition, the company offers technical support and consulting, software development, financing guarantee, and financial technology services. The company was formerly known as Staging Finance Holding Ltd. and changed its name to LexinFintech Holdings Ltd. in March 2017. LexinFintech Holdings Ltd. was founded in 2013 and is headquartered in Shenzhen, the People's Republic of China.