Financial Comparison: Green Dot (NYSE:GDOT) and Weidai (NYSE:WEI)


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Green Dot (NYSE:GDOT) and Weidai (NYSE:WEI) are both business services companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, earnings, analyst recommendations, risk, profitability, valuation and institutional ownership.

Risk and Volatility

Green Dot has a beta of 0.95, suggesting that its stock price is 5% less volatile than the S&P 500. Comparatively, Weidai has a beta of 1.11, suggesting that its stock price is 11% more volatile than the S&P 500.

Valuation and Earnings

This table compares Green Dot and Weidai’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Green Dot $1.11 billion 2.40 $99.90 million $2.33 21.37
Weidai $482.27 million 0.24 $36.43 million $0.52 3.21

Green Dot has higher revenue and earnings than Weidai. Weidai is trading at a lower price-to-earnings ratio than Green Dot, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

90.0% of Green Dot shares are owned by institutional investors. Comparatively, 0.3% of Weidai shares are owned by institutional investors. 4.8% of Green Dot shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Green Dot and Weidai’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Green Dot 4.01% 7.73% 2.43%
Weidai N/A N/A N/A

Analyst Recommendations

This is a summary of recent recommendations and price targets for Green Dot and Weidai, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Green Dot 0 6 5 0 2.45
Weidai 0 0 0 0 N/A

Green Dot presently has a consensus target price of $54.82, suggesting a potential upside of 10.08%. Given Green Dot’s higher possible upside, equities research analysts clearly believe Green Dot is more favorable than Weidai.

Summary

Green Dot beats Weidai on 12 of the 13 factors compared between the two stocks.

Green Dot Company Profile

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, payroll debit cards, and other financial services. It also provides swipe reload services that allow consumers to add funds at the point-of-sale at any participating retailer to accounts the company issue or manage and accounts issued by any third-party bank or program; MoneyPak, a product that allows a consumer to add funds at the point-of-sale at any participating retailer to accounts; and e-cash remittance services that enable 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, 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, and instant payment services. The company markets its products under the Green Dot, GoBank, MoneyPak, TPG, and other brands. Green Dot Corporation markets and sells its products and services through retail stores, various direct-to-consumer online, tax preparation companies and individual tax preparers, and apps, as well as distributes through Â’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.

Weidai Company Profile

Weidai Ltd., through its subsidiaries, provides auto-backed financing solutions in the People's Republic of China. Its auto-backed financing platform connects borrowers primarily small and micro enterprise owners with online investors and institutional funding partners. The company was founded in 2011 and is headquartered in Hangzhou, the People's Republic of China.

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