Financial Survey: Green Dot (NYSE:GDOT) & Tenet Fintech Group (OTCMKTS:PKKFF)

Green Dot (NYSE:GDOT) and Tenet Fintech Group (OTCMKTS:PKKFF) are both small-cap business services companies, but which is the better business? We will compare the two companies based on the strength of their risk, valuation, analyst recommendations, institutional ownership, profitability, dividends and earnings.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Green Dot and Tenet Fintech Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Green Dot	1	1	2	1	2.60
Tenet Fintech Group	0	0	0	0	0.00

Green Dot presently has a consensus price target of $13.00, suggesting a potential downside of 3.38%. Given Green Dot’s stronger consensus rating and higher possible upside, research analysts plainly believe Green Dot is more favorable than Tenet Fintech Group.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Green Dot	$1.72 billion	0.43	-$26.70 million	($0.44)	-30.58
Tenet Fintech Group	$31.17 million	0.26	-$56.92 million	($0.32)	-0.10

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Green Dot	-1.24%	9.93%	1.66%
Tenet Fintech Group	N/A	N/A	N/A

Institutional and Insider Ownership

92.6% of Green Dot shares are held by institutional investors. Comparatively, 0.3% of Tenet Fintech Group shares are held by institutional investors. 1.4% of Green Dot shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Volatility and Risk

Green Dot has a beta of 0.75, meaning that its stock price is 25% less volatile than the S&P 500. Comparatively, Tenet Fintech Group has a beta of 1.85, meaning that its stock price is 85% more volatile than the S&P 500.

Summary

Green Dot beats Tenet Fintech Group on 11 of the 15 factors compared between the two stocks.

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.

About Tenet Fintech Group

Tenet Fintech Group Inc., through its subsidiaries, provides various analytics and AI-based services to small-and-medium businesses and financial institutions. It offers Business Hub, a global ecosystem where analytics and AI are used to create opportunities and facilitate B2B transactions among its members. The company was formerly known as Peak Fintech Group Inc. and changed its name to Tenet Fintech Group Inc. in November 2021. Tenet Fintech Group Inc. was incorporated in 2008 and is headquartered in Toronto, Canada.