Contrasting SHF (NASDAQ:SHFS) and Jefferies Financial Group (NYSE:JEF)

SHF (NASDAQ:SHFS) and Jefferies Financial Group (NYSE:JEF) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, risk, analyst recommendations, dividends, institutional ownership, valuation and profitability.

Valuation & Earnings

This table compares SHF and Jefferies Financial Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SHF	$15.24 million	0.16	-$48.32 million	($1.23)	-0.64
Jefferies Financial Group	$10.82 billion	0.80	$710.47 million	$2.96	14.08

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

Volatility and Risk

SHF has a beta of 0.92, indicating that its share price is 8% less volatile than the S&P 500. Comparatively, Jefferies Financial Group has a beta of 1.52, indicating that its share price is 52% more volatile than the S&P 500.

Profitability

This table compares SHF and Jefferies Financial Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SHF	-568.23%	N/A	-560.90%
Jefferies Financial Group	6.61%	7.86%	1.17%

Institutional and Insider Ownership

29.2% of SHF shares are owned by institutional investors. Comparatively, 60.9% of Jefferies Financial Group shares are owned by institutional investors. 11.8% of SHF shares are owned by insiders. Comparatively, 19.9% of Jefferies Financial Group 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.

Analyst Ratings

This is a breakdown of recent recommendations for SHF and Jefferies Financial Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SHF	1	0	0	0	1.00
Jefferies Financial Group	1	3	3	0	2.29

Jefferies Financial Group has a consensus target price of $57.14, indicating a potential upside of 37.07%. Given Jefferies Financial Group’s stronger consensus rating and higher possible upside, analysts plainly believe Jefferies Financial Group is more favorable than SHF.

Summary

Jefferies Financial Group beats SHF on 14 of the 14 factors compared between the two stocks.

About SHF

SHF Holdings, Inc., through its subsidiaries, provides access to banking, lending, and other financial services to financial institutions serving the cannabis industry. The company, through its proprietary platform, offers access to business checking and savings accounts, cash management accounts, savings and investment options, commercial lending, courier services, remote deposit services, automated clearing house payments and origination, and wire payments. Its services allow cannabis related businesses to obtain services from financial institutions that allow them to run their business with enhanced financial insight into their business and access to resources. The company was founded in 2015 and is based in Golden, Colorado. SHF Holdings, Inc. operates as a subsidiary of Partner Colorado Credit Union.

About Jefferies Financial Group

Jefferies Financial Group Inc. operates as an investment banking and capital markets firm in the Americas, Europe, the Middle East, and the Asia-Pacific. The company operates in two segments, Investment Banking and Capital Markets, and Asset Management. It provides investment banking, advisory services with respect to mergers or acquisitions, debt financing, restructurings or recapitalizations, and private capital advisory transactions; underwriting and placement services related to corporate debt, municipal bonds, mortgage-backed and asset-backed securities, equity and equity-linked securities, and loan syndication services; and corporate lending services. The company also offers financing, securities lending, and other prime brokerage services; equities research, sales, and trading services; wealth management services; and online foreign exchange trading services. In addition, it provides investment grade distressed debt securities, U.S. and European government and agency securities, municipal bonds, leveraged loans, emerging markets debt, and interest rate and credit index derivative products; and manages and offers services to a diverse group of alternative asset management platforms across a spectrum of investment strategies and asset classes. The company was formerly known as Leucadia National Corporation and changed its name to Jefferies Financial Group Inc. in May 2018. Jefferies Financial Group Inc. was founded in 1962 and is headquartered in New York, New York.