Green Dot (NYSE:GDOT) versus Joint Stock Company Kaspi.kz (NASDAQ:KSPI) Critical Comparison

Joint Stock Company Kaspi.kz (NASDAQ:KSPI) and Green Dot (NYSE:GDOT) are both business services companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, dividends, risk, profitability, institutional ownership and earnings.

Profitability

This table compares Joint Stock Company Kaspi.kz and Green Dot’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Joint Stock Company Kaspi.kz	34.82%	60.53%	11.57%
Green Dot	-1.24%	9.93%	1.66%

Insider & Institutional Ownership

32.2% of Joint Stock Company Kaspi.kz shares are owned by institutional investors. Comparatively, 92.6% of Green Dot shares are owned by institutional investors. 1.4% of Green Dot shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Joint Stock Company Kaspi.kz and Green Dot”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Joint Stock Company Kaspi.kz	$4.82 billion	3.49	$2.18 billion	$10.90	7.74
Green Dot	$1.72 billion	0.44	-$26.70 million	($0.44)	-30.84

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

Analyst Recommendations

This is a summary of current ratings and recommmendations for Joint Stock Company Kaspi.kz and Green Dot, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Joint Stock Company Kaspi.kz	0	1	2	0	2.67
Green Dot	1	1	2	2	2.83

Joint Stock Company Kaspi.kz currently has a consensus price target of $122.00, suggesting a potential upside of 44.53%. Green Dot has a consensus price target of $13.00, suggesting a potential downside of 4.20%. Given Joint Stock Company Kaspi.kz’s higher possible upside, equities analysts plainly believe Joint Stock Company Kaspi.kz is more favorable than Green Dot.

Risk and Volatility

Joint Stock Company Kaspi.kz has a beta of 1.09, suggesting that its stock price is 9% more volatile than the S&P 500. Comparatively, Green Dot has a beta of 0.77, suggesting that its stock price is 23% less volatile than the S&P 500.

Summary

Joint Stock Company Kaspi.kz beats Green Dot on 10 of the 14 factors compared between the two stocks.

About Joint Stock Company Kaspi.kz

Joint Stock Company Kaspi.kz, together with its subsidiaries, provides payments, marketplace, and fintech solutions for consumers and merchants in the Republic of Kazakhstan. It operates through three segments: Payments Platform, Marketplace Platform, and Fintech Platform. The Payments Platform segment facilities transactions between customers and merchants. This segment offers shopping transactions, regular household bills, and peer to peer payments for consumers; accepts payment online and in store, issue and settle invoices, pay suppliers and monitor merchant turnover. It also provides proprietary data facilities informed decision making across multiple areas of business. Its Marketplace Platform segment connects online, and offline merchants and consumers enabling merchants to enhance its sales through an omni channel strategy and enable consumers to buy products and services from various merchants. This segment also operates marketplace through m-commerce, a mobile solution for shopping in person which consumers can use e-commerce to shop anywhere, anytime with free delivery; Kaspi Travel allows consumers to book domestic and international flights and package holidays, domestic rail tickets. It also enhances merchants sales by connecting payments and fintech products, Kapsi advertising, and other delivery services. The Fintech Platform segment provides consumers with BNPL, finance, and savings products and merchants with merchant finance services through super apps and Kapsi.kz Super app. It also involved in the banking; distressed asset management; real estate business; payment processing; online travel; and storage and processing of information services. The company was incorporated in 2008 and is headquartered in Almaty, the Republic of Kazakhstan.

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.