Green Dot (NYSE:GDOT) and HARGREAVES LANS/ADR (OTCMKTS:HRGLY) are both business services companies, but which is the better business? We will contrast the two companies based on the strength of their risk, analyst recommendations, valuation, institutional ownership, earnings, profitability and dividends.
Volatility and Risk
Green Dot has a beta of 0.96, suggesting that its stock price is 4% less volatile than the S&P 500. Comparatively, HARGREAVES LANS/ADR has a beta of 0.8, suggesting that its stock price is 20% less volatile than the S&P 500.
This table compares Green Dot and HARGREAVES LANS/ADR’s net margins, return on equity and return on assets.
||Return on Equity
||Return on Assets
HARGREAVES LANS/ADR pays an annual dividend of $0.49 per share and has a dividend yield of 1.1%. Green Dot does not pay a dividend. HARGREAVES LANS/ADR pays out 41.9% of its earnings in the form of a dividend.
Earnings and Valuation
This table compares Green Dot and HARGREAVES LANS/ADR’s gross revenue, earnings per share and valuation.
||Earnings Per Share
HARGREAVES LANS/ADR has lower revenue, but higher earnings than Green Dot. Green Dot is trading at a lower price-to-earnings ratio than HARGREAVES LANS/ADR, indicating that it is currently the more affordable of the two stocks.
This is a summary of current recommendations and price targets for Green Dot and HARGREAVES LANS/ADR, as reported by MarketBeat.
||Strong Buy Ratings
Green Dot presently has a consensus target price of $55.60, indicating a potential upside of 87.33%. Given Green Dot’s higher probable upside, analysts plainly believe Green Dot is more favorable than HARGREAVES LANS/ADR.
Institutional & Insider Ownership
86.6% of Green Dot shares are held by institutional investors. 7.8% of Green Dot 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.
Green Dot beats HARGREAVES LANS/ADR on 11 of the 15 factors compared between the two stocks.
About Green Dot
Green Dot Corporation operates as a financial technology and bank holding company in the United States. It operates in two segments, Account Services, and Processing and Settlement Services. The company offers deposit account programs, such network-branded reloadable prepaid debit cards under the consumer brand names of GPR cards, consumer and small business checking accounts, network-branded gift cards, secured credit cards, and other financial services. It also provides swipe reload system for crediting cash onto an enabled payment card by swiping the payment card at the point-of-sale through Green Dot Network participating retailer; MoneyPak, a product that allows a consumer to add funds to accounts; and e-cash remittance, a service that allows a consumer to transfer funds to a smartphone, as well as offers disbursement services through Simply Paid platform. In addition, the company offers prepaid cards, debit cards, payroll debit cards, consumer cash processing services, wage disbursements, and tax refund processing services, as well as issuing, settlement, and capital management services. Further, it provides mobile banking, loan disbursement accounts, mobile P2P, money transfer, instant payment, and processing and settlement services. The company markets its products under the brand names of Green Dot, GoBank, MoneyPak, AccountNow, RushCard, and RapidPay. Green Dot Corporation markets and sells its products and services through retail stores, various direct-to-consumer Websites, corporate distribution partnerships, tax preparation companies and individual tax preparers, and apps, as well as distributes through ‘Banking as a Service’ platform. The company was formerly known as Next Estate Communications, Inc. and changed its name to Green Dot Corporation in October 2005. Green Dot Corporation was incorporated in 1999 and is headquartered in Pasadena, California.
About HARGREAVES LANS/ADR
Hargreaves Lansdown plc provides direct-to-investor investment services for individuals and corporates in the United Kingdom and Poland. Its flagship service is Vantage, a direct-to-investor platform. The company offers stocks and shares individual savings accounts (ISAs), fund and share accounts, self-invested personal pensions (SIPPs), and lifetime ISAs. It also provides pension services, including SIPPs, annuities, drawdown, and mix and match pensions; share dealing services, such as overseas share dealing, initial public offerings and share offers, certificated share dealing, and exchange traded funds and exchange traded commodities/currencies; and fund dealing services. In addition, the company offers personal and business currency services; Junior ISA, SIPP, and investment accounts; and financial advisory services comprising investment management, lump sum investment, pension consolidation, portfolio restructuring, retirement planning, and estate planning services. Hargreaves Lansdown plc was founded in 1981 and is headquartered in Bristol, the United Kingdom.
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