Comparing Futu (NASDAQ:FUTU) & Dave (NASDAQ:DAVE)

Futu (NASDAQ:FUTU) and Dave (NASDAQ:DAVE) are both business services companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, institutional ownership, profitability, analyst recommendations, earnings, dividends and risk.

Analyst Recommendations

This is a summary of current ratings and price targets for Futu and Dave, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Futu	0	2	5	2	3.00
Dave	0	2	10	0	2.83

Futu presently has a consensus target price of $203.67, indicating a potential upside of 25.99%. Dave has a consensus target price of $304.25, indicating a potential upside of 66.83%. Given Dave’s higher probable upside, analysts plainly believe Dave is more favorable than Futu.

Valuation and Earnings

This table compares Futu and Dave”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Futu	$1.75 billion	12.86	$700.73 million	$8.93	18.10
Dave	$347.10 million	7.09	$57.87 million	$10.09	18.07

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

Insider and Institutional Ownership

18.0% of Dave shares are owned by institutional investors. 35.2% of Futu shares are owned by company insiders. Comparatively, 28.5% of Dave shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Volatility and Risk

Futu has a beta of 0.2, indicating that its share price is 80% less volatile than the S&P 500. Comparatively, Dave has a beta of 3.9, indicating that its share price is 290% more volatile than the S&P 500.

Profitability

This table compares Futu and Dave’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Futu	47.11%	30.59%	5.03%
Dave	29.85%	65.86%	41.56%

Summary

Futu beats Dave on 8 of the 15 factors compared between the two stocks.

About Futu

Futu Holdings Limited provides digitalized securities brokerage and wealth management product distribution service in Hong Kong and internationally. It offers online financial services, including securities and derivative trades brokerage, margin financing and fund distribution services through its Futubull and Moomoo digital platforms. The company also provides financial information and online community services; online wealth management services under the Money Plus brand name through its Futubull and moomoo platforms, which provides its client access to mutual funds, private funds, bonds, structured products, and other wealth management products; market data and information services; and NiuNiu Community, which serves as an open forum for users and clients to share insights, ask questions, and exchange ideas. Futu Holdings Limited was founded in 2007 and is headquartered in Sheung Wan, Hong Kong.

About Dave

Dave, Inc. is a digital banking service. Its products include a budgeting tool to help members manage their upcoming bills to avoid overspending, cash advances through its flagship ExtraCash product to help members avoid punitive overdraft fees, a Side Hustle product, where Dave helps connect members with supplemental work opportunities, and Dave Banking, a modern checking account experience with valuable tools for building long-term financial health. The company was founded by Jason Wilk, Paras Chitrakar, and John Wolanin in October 2015 and is headquartered in Los Angeles, CA.