Reviewing Corpay (NYSE:CPAY) and Green Dot (NYSE:GDOT)

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

Earnings and Valuation

This table compares Corpay and Green Dot”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Corpay	$3.97 billion	5.65	$1.00 billion	$14.73	21.78
Green Dot	$1.72 billion	0.39	-$26.70 million	($0.85)	-14.31

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Corpay	24.37%	37.83%	7.26%
Green Dot	-2.33%	9.81%	1.59%

Analyst Ratings

This is a breakdown of current ratings and price targets for Corpay and Green Dot, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Corpay	0	5	7	0	2.58
Green Dot	2	4	1	0	1.86

Corpay currently has a consensus target price of $366.25, indicating a potential upside of 14.16%. Green Dot has a consensus target price of $12.56, indicating a potential upside of 3.25%. Given Corpay’s stronger consensus rating and higher probable upside, research analysts plainly believe Corpay is more favorable than Green Dot.

Volatility and Risk

Corpay has a beta of 0.84, suggesting that its share price is 16% less volatile than the S&P 500. Comparatively, Green Dot has a beta of 0.82, suggesting that its share price is 18% less volatile than the S&P 500.

Insider & Institutional Ownership

98.8% of Corpay shares are owned by institutional investors. Comparatively, 92.6% of Green Dot shares are owned by institutional investors. 5.0% of Corpay shares are owned by insiders. Comparatively, 1.4% of Green Dot shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Corpay beats Green Dot on 14 of the 14 factors compared between the two stocks.

About Corpay

Corpay, Inc. operates as a payments company that helps businesses and consumers manage vehicle-related expenses, lodging expenses, and corporate payments in the United States, Brazil, the United Kingdom, and internationally. The company offers vehicle payment solutions, which include fuel, tolls, parking, fleet maintenance, and long-haul transportation services, as well as prepaid food and transportation vouchers and cards. It also provides corporate payment solutions consisting of accounts payable automation; virtual cards, cross-border solutions; and purchasing and travel and entertainment card products, as well as lodging payments solutions for employees who travel overnight for work purposes; traveling crews and stranded passengers from airlines and cruise lines; and insurance policyholders displaced from their homes due to damage or catastrophe. In addition, the company offers gifts and payroll cards. It serves business, merchant, consumer, and payment network customers. The company was formerly known as FLEETCOR Technologies, Inc. and changed its name to Corpay, Inc. in March 2024. Corpay, Inc. was founded in 1986 and is headquartered in Atlanta, Georgia.

About Green Dot

Green Dot Corporation, a financial technology and registered bank holding company, provides various financial services to consumers and businesses in the United States. It operates through three segments: Consumer Services, Business to Business Services, and Money Movement Services. The company provides deposit account programs, including consumer and small business checking account products, network-branded reloadable prepaid debit cards and gift cards, and secured credit programs. It offers money processing services, such as cash transfer services that enable consumers to deposit or pick up cash and pay bills with cash at the point-of-sale at any participating retailer; and simply paid disbursement services, which enable wages and authorized funds disbursement to its deposit account programs and accounts issued by any third-party bank or program manager. In addition, the company offers tax processing services comprising tax refund transfers, which provide the processing technology to facilitate receipt of a taxpayers' refund proceeds; small business lending to independent tax preparation providers that seek small advances; and fast cash advance, a loan that enables tax refund recipients. Green Dot Corporation was incorporated in 1999 and is headquartered in Austin, Texas.