Greystone Housing Impact Investors (NYSE:GHI) & NewtekOne (NASDAQ:NEWT) Critical Review

Greystone Housing Impact Investors (NYSE:GHI) and NewtekOne (NASDAQ:NEWT) are both small-cap finance companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, institutional ownership, risk, earnings, profitability, valuation and analyst recommendations.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Greystone Housing Impact Investors and NewtekOne, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Greystone Housing Impact Investors	1	1	1	0	2.00
NewtekOne	0	3	0	1	2.50

Greystone Housing Impact Investors currently has a consensus price target of $9.50, indicating a potential upside of 84.14%. NewtekOne has a consensus price target of $15.33, indicating a potential upside of 20.55%. Given Greystone Housing Impact Investors’ higher possible upside, research analysts clearly believe Greystone Housing Impact Investors is more favorable than NewtekOne.

Profitability

This table compares Greystone Housing Impact Investors and NewtekOne’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Greystone Housing Impact Investors	-5.95%	6.13%	1.17%
NewtekOne	15.51%	18.83%	2.53%

Dividends

Greystone Housing Impact Investors pays an annual dividend of $0.56 per share and has a dividend yield of 10.9%. NewtekOne pays an annual dividend of $0.76 per share and has a dividend yield of 6.0%. Greystone Housing Impact Investors pays out -147.4% of its earnings in the form of a dividend. NewtekOne pays out 34.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Greystone Housing Impact Investors has raised its dividend for 4 consecutive years and NewtekOne has raised its dividend for 1 consecutive years. Greystone Housing Impact Investors is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Valuation and Earnings

This table compares Greystone Housing Impact Investors and NewtekOne”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Greystone Housing Impact Investors	$85.39 million	1.42	-$7.61 million	($0.38)	-13.58
NewtekOne	$383.33 million	0.96	$60.51 million	$2.19	5.81

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

Volatility & Risk

Greystone Housing Impact Investors has a beta of 0.7, suggesting that its stock price is 30% less volatile than the S&P 500. Comparatively, NewtekOne has a beta of 1.22, suggesting that its stock price is 22% more volatile than the S&P 500.

Institutional & Insider Ownership

9.0% of Greystone Housing Impact Investors shares are owned by institutional investors. Comparatively, 38.4% of NewtekOne shares are owned by institutional investors. 1.8% of Greystone Housing Impact Investors shares are owned by company insiders. Comparatively, 6.7% of NewtekOne shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

NewtekOne beats Greystone Housing Impact Investors on 12 of the 18 factors compared between the two stocks.

About Greystone Housing Impact Investors

Greystone Housing Impact Investors LP acquires, holds, sells, and deals in a portfolio of mortgage revenue bonds (MRBs) that are issued to provide construction and/or permanent financing for multifamily, student, and senior citizen housing; skilled nursing properties; and commercial properties in the United States. The company operates in four segments: Affordable Multifamily MRB Investments; Seniors and Skilled Nursing MRB Investments; MF Properties; Market-Rate Joint Venture Investments. It also invests in governmental issuer loans. The company was formerly known as America First Multifamily Investors, L.P. and changed its name to Greystone Housing Impact Investors LP in December 2022. Greystone Housing Impact Investors LP was incorporated in 1998 and is based in Omaha, Nebraska.

About NewtekOne

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.