Newtek Business Services Corp. (NASDAQ: NEWT) is one of 31 publicly-traded companies in the “Transaction & Payment Services” industry, but how does it compare to its competitors? We will compare Newtek Business Services Corp. to related businesses based on the strength of its profitability, analyst recommendations, earnings, risk, valuation, institutional ownership and dividends.
Insider & Institutional Ownership
22.8% of Newtek Business Services Corp. shares are held by institutional investors. Comparatively, 56.6% of shares of all “Transaction & Payment Services” companies are held by institutional investors. 6.7% of Newtek Business Services Corp. shares are held by company insiders. Comparatively, 17.9% of shares of all “Transaction & Payment Services” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
This table compares Newtek Business Services Corp. and its competitors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Newtek Business Services Corp.||81.35%||7.97%||4.23%|
|Newtek Business Services Corp. Competitors||10.78%||15.97%||5.23%|
Newtek Business Services Corp. pays an annual dividend of $1.76 per share and has a dividend yield of 9.8%. Newtek Business Services Corp. pays out 93.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Transaction & Payment Services” companies pay a dividend yield of 1.9% and pay out 60.3% of their earnings in the form of a dividend.
This is a breakdown of recent ratings for Newtek Business Services Corp. and its competitors, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Newtek Business Services Corp.||0||2||0||0||2.00|
|Newtek Business Services Corp. Competitors||117||698||1036||12||2.51|
Newtek Business Services Corp. currently has a consensus target price of $18.00, indicating a potential upside of 0.28%. As a group, “Transaction & Payment Services” companies have a potential upside of 9.89%. Given Newtek Business Services Corp.’s competitors stronger consensus rating and higher probable upside, analysts clearly believe Newtek Business Services Corp. has less favorable growth aspects than its competitors.
Volatility & Risk
Newtek Business Services Corp. has a beta of 1.39, indicating that its stock price is 39% more volatile than the S&P 500. Comparatively, Newtek Business Services Corp.’s competitors have a beta of 1.30, indicating that their average stock price is 30% more volatile than the S&P 500.
Earnings & Valuation
This table compares Newtek Business Services Corp. and its competitors gross revenue, earnings per share and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Newtek Business Services Corp.||$35.85 million||$2.91 million||9.55|
|Newtek Business Services Corp. Competitors||$1.64 billion||$481.00 million||29.32|
Newtek Business Services Corp.’s competitors have higher revenue and earnings than Newtek Business Services Corp.. Newtek Business Services Corp. is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.
Newtek Business Services Corp. competitors beat Newtek Business Services Corp. on 12 of the 15 factors compared.
About Newtek Business Services Corp.
Newtek Business Services Corp. is an internally managed non-diversified closed-end management investment company. The Company’s investment objective is to generate both current income and capital appreciation primarily through loans originated by its small business finance platform and its equity investments in certain portfolio companies that it controls. The Company is a national non-bank lender that provides, together with its controlled portfolio companies, a range of business services and financial products under the Newtek brand to the small and medium-sized business (SMB) market. The Company issues debt and makes equity investments in portfolio companies in various industries. Its products and services include Business Lending including the United States Small Business Administration (SBA) 7(a) and 504 lending, Electronic Payment Processing, Managed Technology Solutions (Cloud Computing), Data Backup, and Payroll and Benefits Solutions to SMB accounts across all industries.
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