Financial Survey: Usio (NASDAQ:USIO) versus Chime Financial (NASDAQ:CHYM)

Chime Financial (NASDAQ:CHYM) and Usio (NASDAQ:USIO) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, profitability, earnings, analyst recommendations, institutional ownership, risk and valuation.

Analyst Ratings

This is a summary of recent recommendations for Chime Financial and Usio, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Chime Financial	1	2	17	3	2.96
Usio	1	1	2	0	2.25

Chime Financial currently has a consensus target price of $36.38, suggesting a potential upside of 25.62%. Usio has a consensus target price of $5.38, suggesting a potential upside of 89.26%. Given Usio’s higher possible upside, analysts plainly believe Usio is more favorable than Chime Financial.

Earnings & Valuation

This table compares Chime Financial and Usio”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Chime Financial	$2.19 billion	5.01	-$1.01 billion	($0.07)	-413.71
Usio	$85.39 million	0.95	-$2.51 million	($0.06)	-47.33

Usio has lower revenue, but higher earnings than Chime Financial. Chime Financial is trading at a lower price-to-earnings ratio than Usio, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

20.2% of Usio shares are held by institutional investors. 12.3% of Chime Financial shares are held by insiders. Comparatively, 19.0% of Usio shares are held by 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.

Risk and Volatility

Chime Financial has a beta of 0.83, indicating that its share price is 17% less volatile than the S&P 500. Comparatively, Usio has a beta of 1.36, indicating that its share price is 36% more volatile than the S&P 500.

Profitability

This table compares Chime Financial and Usio’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Chime Financial	-0.74%	-1.28%	-0.92%
Usio	-1.63%	-8.20%	-1.26%

Summary

Chime Financial beats Usio on 8 of the 15 factors compared between the two stocks.

About Chime Financial

Chime is a financial technology company that partners with federally regulated, FDIC-insured banks—The Bancorp Bank, N.A. and Stride Bank, N.A., Members FDIC—to provide consumer banking products and services. The company’s model is designed to eliminate common fees and simplify access to basic financial services.

Chime does not charge overdraft fees, monthly service fees, or require minimum balances. All account balances are held at partner banks and protected by applicable regulatory safeguards to ensure funds remain secure and accessible.

About Usio

Usio, Inc., together with its subsidiaries, provides integrated electronic payment processing services to merchants and businesses in the United States. The company offers various types of automated clearing house (ACH) processing; and credit, prepaid card, and debit card-based processing services. Its ACH transaction processing services include Represented Check and Check Conversion for electronic payment facilitation. In addition, the company offers merchant account services for the processing of card-based transactions through the VISA, MasterCard, American Express, Discover, and JCB networks, including online terminal services accessed through a website or retail services accessed through a physical terminal. Further, it provides a proprietary web-based customer service application that allows companies to process one-time and recurring payments through e-checks or credit cards; and an interactive voice response telephone system to companies, which accept payments directly from consumers over the telephone using e-checks or credit cards. Additionally, the company offers prepaid and incentive card issuance services; and operates a prepaid core processing platform, as well as provides additional services, such as electronic bill presentment, document composition, document decomposition, and printing and mailing services for various industry verticals, including utilities and financial institutions. It markets and sells ACH products and services primarily through resellers; and prepaid card program directly to government entities, corporations, and to consumers through the internet. The company was formerly known as Payment Data Systems, Inc. and changed its name to Usio, Inc. in June 2019. Usio, Inc. was incorporated in 1998 and is headquartered in San Antonio, Texas.