Reviewing Mercurity Fintech (NASDAQ:MFH) & Green Dot (NYSE:GDOT)

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

Institutional and Insider Ownership

92.6% of Green Dot shares are held by institutional investors. Comparatively, 30.8% of Mercurity Fintech shares are held by institutional investors. 1.4% of Green Dot shares are held by insiders. Comparatively, 62.8% of Mercurity Fintech shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Green Dot and Mercurity Fintech”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Green Dot	$1.72 billion	0.40	-$26.70 million	($0.85)	-14.69
Mercurity Fintech	$956,830.00	350.14	-$4.53 million	N/A	N/A

Mercurity Fintech has lower revenue, but higher earnings than Green Dot.

Volatility and Risk

Green Dot has a beta of 0.82, suggesting that its stock price is 18% less volatile than the S&P 500. Comparatively, Mercurity Fintech has a beta of 4.3, suggesting that its stock price is 330% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and target prices for Green Dot and Mercurity Fintech, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Green Dot	2	5	1	0	1.88
Mercurity Fintech	1	0	0	0	1.00

Green Dot presently has a consensus price target of $12.56, suggesting a potential upside of 0.62%. Given Green Dot’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Green Dot is more favorable than Mercurity Fintech.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Green Dot	-2.33%	9.81%	1.59%
Mercurity Fintech	N/A	N/A	N/A

Summary

Green Dot beats Mercurity Fintech on 7 of the 12 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 Mercurity Fintech

Mercurity Fintech Holding Inc. operates as a fintech company powered by blockchain. The company provides digital asset trading infrastructure solutions based on internet and blockchain technologies for cryptocurrency traders; and asset digitalization platform, which offers blockchain-based digitalization solutions for traditional assets, such as fiat currencies, bonds, and precious metals. It also offers cryptocurrency mining services that provides computing power to the mining pool; and digital consultation services, such as digital payment solutions, asset management, and online and traditional brokerage services. The company was formerly known as JMU Limited and changed its name to Mercurity Fintech Holding Inc. in April 2020. Mercurity Fintech Holding Inc. was incorporated in 2011 and is headquartered in New York, New York.