Reviewing NewtekOne (NASDAQ:NEWT) and Imation (OTCMKTS:GLAE)

Imation (OTCMKTS:GLAE) and NewtekOne (NASDAQ:NEWT) are both small-cap finance companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, institutional ownership, risk, valuation, earnings, profitability and analyst recommendations.

Institutional & Insider Ownership

38.3% of NewtekOne shares are held by institutional investors. 9.2% of Imation shares are held by insiders. Comparatively, 6.7% of NewtekOne shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Imation and NewtekOne’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Imation	N/A	N/A	N/A
NewtekOne	15.51%	19.52%	2.68%

Risk and Volatility

Imation has a beta of 7.44, meaning that its share price is 644% more volatile than the S&P 500. Comparatively, NewtekOne has a beta of 1.25, meaning that its share price is 25% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and target prices for Imation and NewtekOne, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Imation	0	0	0	0	0.00
NewtekOne	0	4	0	1	2.40

NewtekOne has a consensus target price of $14.75, suggesting a potential upside of 5.81%. Given NewtekOne’s stronger consensus rating and higher possible upside, analysts clearly believe NewtekOne is more favorable than Imation.

Earnings and Valuation

This table compares Imation and NewtekOne”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Imation	N/A	N/A	N/A	N/A	N/A
NewtekOne	$268.63 million	1.50	$58.18 million	$2.19	6.37

NewtekOne has higher revenue and earnings than Imation.

Summary

NewtekOne beats Imation on 8 of the 10 factors compared between the two stocks.

About Imation

GlassBridge Enterprises, Inc., through its subsidiaries, owns and operates an asset management business in the United States. It offers investment advisory services to third party investors through managed funds separate managed accounts. The company was formerly known as Imation Corp. and changed its name to GlassBridge Enterprises, Inc. in February 2017. GlassBridge Enterprises, Inc. was incorporated in 1996 and is headquartered in New York, New York.

About NewtekOne

NewtekOne, Inc. operates as the bank holding company for Newtek Bank, National Association that engages in the provision of various business and financial solutions under the Newtek brand name to the small- and medium-sized business market. The company accepts demand, savings, NOW, money market, and time deposits; and provides loans including SBA loans, commercial and industrial loans, and commercial real estate loans. It is also involved in the provision of electronic payment processing services comprising credit and debit card processing services, check approval services, processing equipment, and software, as well as cloud-based Point of Sale systems for a various restaurant, retail, assisted living, taxi cabs, parks, and golf course businesses. In addition, it offers wholesale brokerage insurance agency services; and payroll management, and related payment and tax reporting services to independent business owners. Further, the company provides website hosting, dedicated server hosting, cloud hosting, web design and development, internet marketing, ecommerce, data storage, backup and disaster recovery, and other related services, including consulting and implementing technology solutions for enterprise and commercial clients as well as SMBs. The company was formerly known as Newtek Business Services Corp. and changed its name to NewtekOne, Inc. in January 2023. NewtekOne, Inc. was founded in 1998 and is headquartered in Boca Raton, Florida.