Reviewing Remitly Global (NASDAQ:RELY) & Green Dot (NYSE:GDOT)

Green Dot (NYSE:GDOT) and Remitly Global (NASDAQ:RELY) are both business services companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, risk, profitability, earnings, analyst recommendations, institutional ownership and valuation.

Valuation and Earnings

This table compares Green Dot and Remitly Global”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Green Dot	$2.08 billion	0.30	-$98.87 million	($1.78)	-6.25
Remitly Global	$1.64 billion	2.08	$67.93 million	$0.31	51.97

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

Risk and Volatility

Green Dot has a beta of 0.82, suggesting that its share price is 18% less volatile than the S&P 500. Comparatively, Remitly Global has a beta of 0.06, suggesting that its share price is 94% less volatile than the S&P 500.

Insider & Institutional Ownership

92.6% of Green Dot shares are held by institutional investors. Comparatively, 74.3% of Remitly Global shares are held by institutional investors. 1.4% of Green Dot shares are held by company insiders. Comparatively, 7.5% of Remitly Global shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and price targets for Green Dot and Remitly Global, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Green Dot	2	4	1	0	1.86
Remitly Global	0	1	10	1	3.00

Green Dot presently has a consensus target price of $13.56, suggesting a potential upside of 21.91%. Remitly Global has a consensus target price of $22.78, suggesting a potential upside of 41.39%. Given Remitly Global’s stronger consensus rating and higher possible upside, analysts clearly believe Remitly Global is more favorable than Green Dot.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Green Dot	-4.75%	6.93%	1.10%
Remitly Global	4.15%	8.87%	5.66%

Summary

Remitly Global beats Green Dot on 12 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 Remitly Global

Remitly Global, Inc. provides digital financial services for immigrants and their families. It primarily offers cross-border remittance services in approximately 170 countries. The company was incorporated in 2011 and is headquartered in Seattle, Washington.