Comprehensive Stock Comparison
Compare Lufax Holding Ltd (LU) vs Capital One Financial Corporation (COF) Stock
Analyze side-by-side fundamentals, valuation, growth, and profitability to decide which stock is the better buy.
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Quick Verdict
| Category | Winner | Why |
|---|---|---|
| Growth | COF | 9.0% revenue growth vs LU's -39.6% |
| Value | LU | Lower P/E (0.6x vs 9.7x) |
| Quality / Margins | COF | 8.8% net margin vs LU's 2.1% |
| Stability / Safety | LU | Beta 1.07 vs COF's 1.53, lower leverage |
| Dividends | LU | 28.1% yield, vs COF's 1.2% |
| Momentum (1Y) | COF | -1.1% vs LU's -10.3% |
| Efficiency (ROA) | COF | 0.2% ROA vs LU's -1.6%, ROIC 4.1% vs 7.7% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Defensive / Recession hedge
Business Model
What each company does and how it makes money
Lufax is a Chinese technology-empowered personal financial services platform that connects borrowers with lenders and investors with wealth management products. It generates revenue primarily through loan facilitation fees from its credit business — which accounts for the majority of income — and service fees from its wealth management platform. The company's key advantage is its proprietary technology platform that uses big data and AI for risk assessment, creating a scalable ecosystem that serves both retail and institutional clients.
Capital One is a diversified financial services company that operates primarily as a credit card issuer and consumer bank. It generates revenue through three main segments: credit card interest and fees (its largest segment), consumer banking services, and commercial banking operations. The company's key advantage lies in its sophisticated data analytics and technology platform—which enables targeted marketing and risk assessment—coupled with its direct banking model that reduces physical branch costs.
Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Segment breakdown not available.
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
LU leads in 2 of 6 categories (Financial Metrics, Valuation Metrics). COF leads in 1 (Total Returns). 3 tied.
Financial Metrics (TTM)
COF and LU operate at a comparable scale, with $53.9B and $41.7B in trailing revenue. COF is the more profitable business, keeping 8.8% of every revenue dollar as net income compared to LU's 2.1%.
| Metric | LULufax Holding Ltd | COFCapital One Finan… |
|---|---|---|
| RevenueTrailing 12 months | $41.7B | $53.9B |
| EBITDAEarnings before interest/tax | -$1.3B | $6.1B |
| Net IncomeAfter-tax profit | -$3.4B | $1.4B |
| Free Cash FlowCash after capex | $8.6B | $20.8B |
| Gross MarginGross profit ÷ Revenue | +69.5% | +50.8% |
| Operating MarginEBIT ÷ Revenue | +35.5% | +11.0% |
| Net MarginNet income ÷ Revenue | +2.1% | +8.8% |
| FCF MarginFCF ÷ Revenue | +35.9% | +31.4% |
| Rev. Growth (YoY)Latest quarter vs prior year | — | — |
| EPS Growth (YoY)Latest quarter vs prior year | -10.6% | +9.5% |
Valuation Metrics
At 5.8x trailing earnings, LU trades at a 66% valuation discount to COF's 16.9x P/E. On an enterprise value basis, LU's 1.3x EV/EBITDA is more attractive than COF's 13.9x.
| Metric | LULufax Holding Ltd | COFCapital One Finan… |
|---|---|---|
| Market CapShares × price | $2.3B | $124.4B |
| Enterprise ValueMkt cap + debt − cash | $3.0B | $126.7B |
| Trailing P/EPrice ÷ TTM EPS | 5.79x | 16.88x |
| Forward P/EPrice ÷ next-FY EPS est. | 0.56x | 9.67x |
| PEG RatioP/E ÷ EPS growth rate | — | 10.08x |
| EV / EBITDAEnterprise value multiple | 1.32x | 13.85x |
| Price / SalesMarket cap ÷ Revenue | 0.37x | 2.31x |
| Price / BookPrice ÷ Book value/share | 0.05x | 1.23x |
| Price / FCFMarket cap ÷ FCF | 1.03x | 7.34x |
Profitability & Efficiency
COF delivers a 1.2% return on equity — every $100 of shareholder capital generates $1 in annual profit, vs $-4 for LU. LU carries lower financial leverage with a 0.48x debt-to-equity ratio, signaling a more conservative balance sheet compared to COF's 0.75x.
| Metric | LULufax Holding Ltd | COFCapital One Finan… |
|---|---|---|
| ROE (TTM)Return on equity | -3.9% | +1.2% |
| ROA (TTM)Return on assets | -1.6% | +0.2% |
| ROICReturn on invested capital | +7.7% | +4.1% |
| ROCEReturn on capital employed | +5.1% | +4.6% |
| Piotroski ScoreFundamental quality 0–9 | 5 | 5 |
| Debt / EquityFinancial leverage | 0.48x | 0.75x |
| Net DebtTotal debt minus cash | $4.9B | $2.3B |
| Cash & Equiv.Liquid assets | $40.0B | $43.2B |
| Total DebtShort + long-term debt | $44.9B | $45.6B |
| Interest CoverageEBIT ÷ Interest expense | -0.12x | 0.11x |
Total Returns (with DRIP)
A $10,000 investment in COF five years ago would be worth $16,819 today (with dividends reinvested), compared to $1,185 for LU. Over the past 12 months, COF leads with a -1.1% total return vs LU's -10.3%. The 3-year compound annual growth rate (CAGR) favors COF at 23.1% vs LU's -15.0% — a key indicator of consistent wealth creation.
| Metric | LULufax Holding Ltd | COFCapital One Finan… |
|---|---|---|
| YTD ReturnYear-to-date | -3.3% | -20.8% |
| 1-Year ReturnPast 12 months | -10.3% | -1.1% |
| 3-Year ReturnCumulative with dividends | -38.5% | +86.3% |
| 5-Year ReturnCumulative with dividends | -88.1% | +68.2% |
| 10-Year ReturnCumulative with dividends | -85.7% | +228.4% |
| CAGR (3Y)Annualised 3-year return | -15.0% | +23.1% |
Risk & Volatility
LU is the less volatile stock with a 1.07 beta — it tends to amplify market swings less than COF's 1.53 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. COF currently trades 75.4% from its 52-week high vs LU's 56.9% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | LULufax Holding Ltd | COFCapital One Finan… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.07x | 1.53x |
| 52-Week HighHighest price in past year | $4.57 | $259.64 |
| 52-Week LowLowest price in past year | $2.30 | $143.22 |
| % of 52W HighCurrent price vs 52-week peak | +56.9% | +75.4% |
| RSI (14)Momentum oscillator 0–100 | 46.7 | 45.1 |
| Avg Volume (50D)Average daily shares traded | 1.0M | 4.5M |
Analyst Outlook
Wall Street rates LU as "Buy" and COF as "Buy". Consensus price targets imply 39.9% upside for COF (target: $274) vs 33.8% for LU (target: $3). For income investors, LU offers the higher dividend yield at 28.06% vs COF's 1.24%.
| Metric | LULufax Holding Ltd | COFCapital One Finan… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $3.48 | $273.62 |
| # AnalystsCovering analysts | 13 | 56 |
| Dividend YieldAnnual dividend ÷ price | +28.1% | +1.2% |
| Dividend StreakConsecutive years of raises | 0 | 2 |
| Dividend / ShareAnnual DPS | $5.01 | $2.43 |
| Buyback YieldShare repurchases ÷ mkt cap | 0.0% | +0.6% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Oct 20 | Feb 26 | Change |
|---|---|---|---|
| Lufax Holding Ltd (LU) | 100 | 5.06 | -94.9% |
| Capital One Financi… (COF) | 100 | 295.56 | +195.6% |
Capital One Financi… (COF) returned +68% over 5 years vs Lufax Holding Ltd (LU)'s -88%. A $10,000 investment in COF 5 years ago would be worth $16,819 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2015 | 2024 | Change |
|---|---|---|---|
| Lufax Holding Ltd (LU) | $32.3B | $41.7B | +28.9% |
| Capital One Financi… (COF) | $25.0B | $53.9B | +115.4% |
Capital One Financial Corporation's revenue grew from $25.0B (2015) to $53.9B (2024) — a 8.9% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2015 | 2024 | Change |
|---|---|---|---|
| Lufax Holding Ltd (LU) | 18.4% | 2.1% | -88.5% |
| Capital One Financi… (COF) | 16.2% | 8.8% | -45.6% |
Capital One Financial Corporation's net margin went from 16% (2015) to 9% (2024).
Chart 4P/E Ratio History — 8 Years
| Stock | 2017 | 2024 | Change |
|---|---|---|---|
| Lufax Holding Ltd (LU) | 1.3 | 1 | -23.1% |
| Capital One Financi… (COF) | 28.5 | 15.4 | -46.0% |
Lufax Holding Ltd has traded in a 0x–1x P/E range over 4 years; current trailing P/E is ~6x. Capital One Financial Corporation has traded in a 5x–29x P/E range over 8 years; current trailing P/E is ~17x.
Chart 5EPS Growth — 10 Years
| Stock | 2015 | 2024 | Change |
|---|---|---|---|
| Lufax Holding Ltd (LU) | 22.42 | 3.08 | -86.3% |
| Capital One Financi… (COF) | 7.07 | 11.59 | +63.9% |
Capital One Financial Corporation's EPS grew from $7.07 (2015) to $11.59 (2024) — a 6% CAGR.
Chart 6Free Cash Flow — 5 Years
Lufax Holding Ltd generated $15B FCF in 2023 (+210% vs 2021). Capital One Financial Corporation generated $17B FCF in 2024 (+46% vs 2021).
LU vs COF: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is LU or COF a better buy right now?
Lufax Holding Ltd (LU) offers the better valuation at 5.8x trailing P/E (0.6x forward), making it the more compelling value choice. Analysts rate Lufax Holding Ltd (LU) a "Buy" — based on 13 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — LU or COF?
On trailing P/E, Lufax Holding Ltd (LU) is the cheapest at 5.8x versus Capital One Financial Corporation at 16.9x. On forward P/E, Lufax Holding Ltd is actually cheaper at 0.6x.
03Which is the better long-term investment — LU or COF?
Over the past 5 years, Capital One Financial Corporation (COF) delivered a total return of +68.2%, compared to -88.1% for Lufax Holding Ltd (LU). A $10,000 investment in COF five years ago would be worth approximately $17K today (assuming dividends reinvested). Over 10 years, the gap is even starker: COF returned +228.4% versus LU's -85.7%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — LU or COF?
By beta (market sensitivity over 5 years), Lufax Holding Ltd (LU) is the lower-risk stock at 1.07β versus Capital One Financial Corporation's 1.53β — meaning COF is approximately 43% more volatile than LU relative to the S&P 500. On balance sheet safety, Lufax Holding Ltd (LU) carries a lower debt/equity ratio of 48% versus 75% for Capital One Financial Corporation — giving it more financial flexibility in a downturn.
05Which has better profit margins — LU or COF?
Capital One Financial Corporation (COF) is the more profitable company, earning 8.8% net margin versus 2.1% for Lufax Holding Ltd — meaning it keeps 8.8% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: LU leads at 35.5% versus 11.0% for COF. At the gross margin level — before operating expenses — LU leads at 69.5%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
06Is LU or COF more undervalued right now?
On forward earnings alone, Lufax Holding Ltd (LU) trades at 0.6x forward P/E versus 9.7x for Capital One Financial Corporation — 9.1x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for COF: 39.9% to $273.62.
07Which pays a better dividend — LU or COF?
All stocks in this comparison pay dividends. Lufax Holding Ltd (LU) offers the highest yield at 28.1%, versus 1.2% for Capital One Financial Corporation (COF).
08Is LU or COF better for a retirement portfolio?
For long-horizon retirement investors, Lufax Holding Ltd (LU) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 1.07), 28.1% yield). Capital One Financial Corporation (COF) carries a higher beta of 1.53 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (LU: -85.7%, COF: +228.4%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
09What are the main differences between LU and COF?
Both stocks operate in the Financial Services sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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- Sector: Financial Services
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- Gross Margin > 41%
- Dividend Yield > 11.2%