Futu (NASDAQ:FUTU – Get Free Report) and ATRenew (NYSE:RERE – Get Free Report) are both business services companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, valuation, analyst recommendations, institutional ownership, earnings, profitability and dividends.
Institutional & Insider Ownership
19.3% of ATRenew shares are owned by institutional investors. 35.2% of Futu shares are owned by insiders. Comparatively, 10.7% of ATRenew shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Profitability
This table compares Futu and ATRenew’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Futu | 41.74% | 23.07% | 4.34% |
| ATRenew | 0.73% | 8.91% | 6.38% |
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Futu | 0 | 1 | 6 | 1 | 3.00 |
| ATRenew | 0 | 0 | 0 | 0 | 0.00 |
Futu presently has a consensus price target of $158.1286, indicating a potential downside of 6.17%. Given Futu’s stronger consensus rating and higher probable upside, equities analysts clearly believe Futu is more favorable than ATRenew.
Risk and Volatility
Futu has a beta of 0.49, indicating that its stock price is 51% less volatile than the S&P 500. Comparatively, ATRenew has a beta of 0.2, indicating that its stock price is 80% less volatile than the S&P 500.
Earnings and Valuation
This table compares Futu and ATRenew”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Futu | $15.69 billion | 1.49 | $700.73 million | $6.00 | 28.09 |
| ATRenew | $2.24 billion | 0.51 | -$1.13 million | $0.07 | 66.21 |
Futu has higher revenue and earnings than ATRenew. Futu is trading at a lower price-to-earnings ratio than ATRenew, indicating that it is currently the more affordable of the two stocks.
Summary
Futu beats ATRenew on 12 of the 15 factors compared between the two stocks.
About Futu
Futu Holdings Limited provides digitalized securities brokerage and wealth management product distribution service in Hong Kong and internationally. It offers online financial services, including securities and derivative trades brokerage, margin financing and fund distribution services through its Futubull and Moomoo digital platforms. The company also provides financial information and online community services; online wealth management services under the Money Plus brand name through its Futubull and moomoo platforms, which provides its client access to mutual funds, private funds, bonds, structured products, and other wealth management products; market data and information services; and NiuNiu Community, which serves as an open forum for users and clients to share insights, ask questions, and exchange ideas. Futu Holdings Limited was founded in 2007 and is headquartered in Sheung Wan, Hong Kong.
About ATRenew
ATRenew Inc., through its subsidiaries, operates pre-owned consumer electronics transactions and services platform in the People's Republic of China. It primarily sells mobile phones, laptops, tablets, drones, digital cameras; and vintage bags, watches, liquor, gold, and various household goods through its online platforms and offline stores, as well as provides services to third-party merchants to sell the products through its platforms. The company was formerly known as AiHuiShou International Co. Ltd. and changed its name to ATRenew Inc. November 2021. The company was incorporated in 2011 and is headquartered in Shanghai, the People's Republic of China.
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