NewtekOne (NASDAQ:NEWT) and Fold (NASDAQ:FLD) Head-To-Head Comparison

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

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NewtekOne	$383.33 million	0.98	$58.18 million	$2.19	5.92
Fold	N/A	N/A	-$1.87 million	($0.75)	-2.00

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

Insider & Institutional Ownership

38.4% of NewtekOne shares are held by institutional investors. Comparatively, 56.9% of Fold shares are held by institutional investors. 6.7% of NewtekOne shares are held by company insiders. Comparatively, 66.8% of Fold shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
NewtekOne	15.51%	19.52%	2.68%
Fold	N/A	60.59%	26.06%

Volatility and Risk

NewtekOne has a beta of 1.25, suggesting that its share price is 25% more volatile than the S&P 500. Comparatively, Fold has a beta of 0.18, suggesting that its share price is 82% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for NewtekOne and Fold, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NewtekOne	0	4	0	1	2.40
Fold	1	0	2	1	2.75

NewtekOne currently has a consensus price target of $15.00, indicating a potential upside of 15.74%. Fold has a consensus price target of $7.83, indicating a potential upside of 422.22%. Given Fold’s stronger consensus rating and higher possible upside, analysts clearly believe Fold is more favorable than NewtekOne.

Summary

Fold beats NewtekOne on 7 of the 13 factors compared between the two stocks.

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.

About Fold

FTAC Emerald Acquisition Corp. does not have significant operations. It intends to effect a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, and similar business combination with one or more businesses or assets operating in the clean/renewable energy, water sustainability, agricultural technology, shared economy software, and mobility sectors. The company was formerly known as Emerald ESG Acquisition Corp. FTAC Emerald Acquisition Corp. was incorporated in 2021 and is based in Philadelphia, Pennsylvania.