BitFuFu (NASDAQ:FUFU) and NewtekOne (NASDAQ:NEWT) Critical Analysis

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

Risk and Volatility

BitFuFu has a beta of 0.31, meaning that its share price is 69% less volatile than the S&P 500. Comparatively, NewtekOne has a beta of 1.22, meaning that its share price is 22% more volatile than the S&P 500.

Valuation and Earnings

This table compares BitFuFu and NewtekOne”s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
BitFuFu $382.94 million 1.64 $53.96 million $0.29 13.21
NewtekOne $338.73 million 0.95 $50.85 million $2.01 6.11

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

Institutional & Insider Ownership

37.3% of BitFuFu shares are owned by institutional investors. Comparatively, 38.4% of NewtekOne shares are owned by institutional investors. 35.0% of BitFuFu shares are owned by insiders. Comparatively, 6.7% of NewtekOne shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
BitFuFu 12.44% 10.33% 4.33%
NewtekOne 14.65% 19.16% 2.67%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for BitFuFu and NewtekOne, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BitFuFu 0 3 3 0 2.50
NewtekOne 0 4 0 0 2.00

BitFuFu currently has a consensus target price of $6.4525, indicating a potential upside of 68.47%. NewtekOne has a consensus target price of $13.00, indicating a potential upside of 5.78%. Given BitFuFu’s stronger consensus rating and higher possible upside, equities research analysts clearly believe BitFuFu is more favorable than NewtekOne.

Summary

BitFuFu beats NewtekOne on 9 of the 14 factors compared between the two stocks.

About BitFuFu

(Get Free Report)

BitFuFu Inc. provides digital asset mining and cloud-mining services in Singapore. It also offers miner rental, and miner hosting and sales services to institutional customers and individual digital asset enthusiasts. The company is based in Singapore, Singapore.

About NewtekOne

(Get Free Report)

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.

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