Green Dot (NYSE:GDOT – Get Rating) and Northern Lights Acquisition (NASDAQ:NLIT – Get Rating) are both small cap business services companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, dividends, risk, valuation, analyst recommendations, profitability and earnings.
Institutional and Insider Ownership
92.0% of Green Dot shares are held by institutional investors. By comparison, 79.5% of the shares of Northern Lights Acquisition are held by institutional investors. 2.9% of Green Dot shares are held by insiders. Strong institutional ownership indicates that large fund managers, endowments, and hedge funds believe a company will outperform the market over the long term.
Valuation and benefits
This chart compares the gross revenue, earnings per share (EPS), and valuation of Green Dot and Northern Lights Acquisition.
|Gross revenue||Price/sales ratio||Net revenue||Earnings per share||Price/earnings ratio|
|Green Point||$1.43 billion||1.01||$47.48 million||$1.09||24:41|
|Acquisition of aurora borealis||N / A||N / A||$1.25 million||N / A||N / A|
Green Dot has higher revenue and profit than Northern Lights Acquisition.
This is a summary of recent recommendations for acquiring Green Dot and Northern Lights, as provided by MarketBeat.com.
|Sales Ratings||Hold odds||Buy reviews||Strong buy odds||Rating|
|Acquisition of aurora borealis||0||0||0||0||N / A|
Green Dot currently has a consensus price target of $40.80, indicating a potential upside of 53.33%. Considering the possible higher upside of Green Dot, stock analysts clearly believe that Green Dot is more favorable than Northern Lights Acquisition.
This table compares the net margins, return on equity and return on assets of Green Dot and Northern Lights Acquisition.
|Net margins||Return on equity||return on assets|
|Acquisition of aurora borealis||N / A||-58.07%||1.72%|
Green Dot beats Northern Lights Acquisition on 9 of the 9 factors compared between the two stocks.
About the green dot
(Get a rating)
Green Dot Corporation, a financial technology and bank holding company, provides various financial products to consumers and businesses in the United States. It operates through three segments: consumer services, business-to-business services and funds movement services. The Company offers deposit account programs, including checking account products for individuals and small businesses, network-branded reloadable debit cards and prepaid gift cards, and secure credit programs. It also provides money processing services, such as cash transfer services that allow consumers to deposit or withdraw money and pay bills in cash at the point of sale at any participating retailer; and simply paid disbursement services, which enable the disbursement of salaries and authorized funds to its deposit account programs and accounts issued by a bank or third-party program manager. In addition, the company offers tax processing services including tax refund transfers, which provide processing technology to facilitate the receipt of a taxpayer’s refund proceeds; small business loans to independent tax preparation providers seeking small advances; and fast cash advance, a loan that allows recipients tax refunds. Green Dot Corporation was incorporated in 1999 and is headquartered in Austin, Texas.
About Acquiring the Northern Lights
(Get a rating)
Northern Lights Acquisition Corp. has no significant activities. It intends to enter into a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more companies in the cannabis industry. The company was incorporated in 2021 and is based in New York, New York.
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