Coinbase Global (NASDAQ: COIN) has demonstrated stronger financial performance compared to NewtekOne (NASDAQ: NEWT) across multiple investment metrics. A recent analysis reveals that Coinbase outshines NewtekOne in profitability, valuation, and analyst recommendations, suggesting that it may be the more favorable investment choice.
Comparative Financial Performance
Coinbase Global has reported significantly higher revenue figures and earnings per share (EPS) than NewtekOne. For investors, this distinction is crucial as it highlights the financial strength of Coinbase within the competitive landscape. Additionally, NewtekOne trades at a lower price-to-earnings ratio than Coinbase, indicating it may currently represent a more affordable option for potential investors.
In terms of profitability, Coinbase’s financial metrics show a net margin substantially greater than that of NewtekOne. Furthermore, the return on equity and return on assets for Coinbase suggests a more effective utilization of resources compared to its counterpart. These factors contribute to a compelling case for Coinbase as a stronger investment opportunity.
Ownership and Institutional Confidence
Institutional ownership provides insight into investor confidence. Approximately 68.8% of Coinbase shares are held by institutional investors, compared to 38.4% for NewtekOne. This disparity indicates a stronger belief among large money managers and hedge funds in Coinbase’s potential to outperform the market over the long term. Insider ownership also reflects confidence, with 16.6% of Coinbase shares owned by company insiders versus 6.7% for NewtekOne.
The level of institutional investment is often seen as a barometer of future performance, with higher percentages typically indicating a favorable outlook.
Risk factors also differ between the two companies. Coinbase has a beta of 3.7, suggesting its stock is 270% more volatile than the S&P 500 index. In contrast, NewtekOne has a beta of 1.23, indicating it is 23% more volatile than the index. This increased volatility for Coinbase could present higher risks for investors but also the potential for greater rewards.
Analyst forecasts reinforce the perception of Coinbase as the more promising investment. According to MarketBeat, Coinbase has a consensus price target of $379.88, representing a potential upside of 60.60%. Conversely, NewtekOne’s price target is $14.25, indicating a more modest potential upside of 24.67%.
Company Profiles
Coinbase Global, founded in 2012 and headquartered in Wilmington, Delaware, provides financial infrastructure and technology for the cryptocurrency economy. The company offers a primary financial account for consumers and a marketplace that facilitates transactions in crypto assets for institutional clients. Its services also include technology solutions that enable developers to create crypto products and accept digital currencies securely.
On the other hand, NewtekOne, established in 1998 and based in Boca Raton, Florida, serves as the bank holding company for Newtek Bank. It offers a range of business and financial solutions aimed primarily at small- and medium-sized enterprises. These services include various loan types, electronic payment processing, and technology consulting. In January 2023, the company rebranded from Newtek Business Services Corp. to NewtekOne, Inc.
In summary, a comparison of key financial indicators suggests that Coinbase Global is the more advantageous investment choice over NewtekOne. With stronger profitability metrics, higher institutional ownership, and favorable analyst ratings, Coinbase stands out in the finance sector. Investors considering options in the financial industry may find Coinbase’s robust performance and growth potential compelling.
