Analysis of Newtek (NASDAQ:NEWT) and Lyft (NASDAQ:LYFT) trading services
Analysis of Newtek (NASDAQ:NEWT) and Lyft (NASDAQ:LYFT) trading services

Newtek Business Services (NASDAQ: NEWTGet a rating) and Lyft (NASDAQ: LYFTGet a rating) are both finance companies, but which is the superior investment? We’ll compare the two companies based on the strength of their institutional ownership, valuation, risk, earnings, dividends, profitability, and analyst recommendations.

Institutional and Insider Ownership

24.2% of Newtek Business Services shares are held by institutional investors. By comparison, 80.4% of Lyft’s stock is held by institutional investors. 5.1% of Newtek Business Services shares are held by insiders. By comparison, 5.8% of Lyft stock is held by insiders. Strong institutional ownership indicates that large fund managers, hedge funds, and endowments believe a company is poised for long-term growth.

Benefits and evaluation

This table compares the revenue, earnings per share, and valuation of Newtek Business Services and Lyft.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
Newtek Business Services $108.49 million 5.27 $84.14 million $3.70 6.85
Lyft $3.21 billion 3.86 -$1.01 billion ($3.03) -11.73

Newtek Business Services has higher revenue, but lower revenue than Lyft. Lyft trades at a lower price-to-earnings ratio than Newtek Business Services, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Newtek Business Services and Lyft, as reported by MarketBeat.com.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
Newtek Business Services 1 1 0 0 1.50
Lyft 0 ten 18 0 2.64

Newtek Business Services currently has a consensus price target of $38.00, indicating a potential upside of 49.84%. Lyft has a consensus price target of $59.46, indicating a potential upside of 67.31%. Given Lyft’s stronger consensus rating and higher possible upside, analysts clearly think Lyft is more favorable than Newtek Business Services.

Risk and Volatility

Newtek Business Services has a beta of 1.09, suggesting its stock price is 9% more volatile than the S&P 500. Comparatively, Lyft has a beta of 1.83, suggesting its stock price is 83% more volatile than the S&P 500.

Profitability

This table compares the net margins, return on equity, and return on assets of Newtek Business Services and Lyft.

Net margins Return on equity return on assets
Newtek Business Services 99.71% 21.02% 8.01%
Lyft -31.46% -57.94% -17.50%

About Newtek Business Services (Get a rating)

Newtek Business Services Corp. is a business development company specializing in providing financial and business services to the small and medium business market in the United States. The company is also looking to invest in early-stage companies. The company seeks to make debt and equity investments. Within leveraged investments, he focuses on senior loans, which have tenors of 1 to 25 years; junior loans, which have tenors of 5 to 25 years, and unsecured loans, which are provided to meet short-term financing needs and are repaid within 6 to 12 months. It operates through Electronic Payment Processing, Managed Technology Solutions, Small Business Finance and Capcos segments. The company provides small business administration loans for the purpose of acquiring commercial real estate, machinery, equipment and inventory, as well as refinancing debt and funding franchises, working capital and business acquisitions; and provides small business loan servicing and advisory services to the Federal Deposit Insurance Corporation and various other financial institutions, as well as management services. Its electronic payment processing services include credit and debit card processing, check approval, ancillary processing equipment and software for merchants, e-commerce, electronic solutions for accepting payments other than in cash, check conversion, remote deposit capture, ACH processing, and electronic gift and loyalty cards. programs. The company also provides website hosting, dedicated server and cloud hosting services; Web design and development; online marketing; data storage and backup and other related services; and e-commerce services, such as payment processing, online shopping cart tools, website design, and web-related services; Accounts Receivable Funding and Secure Gateway. Additionally, it offers Newtek Advantage, a real-time mobile operating platform for a business to access data on a smartphone, tablet, laptop or PC for e-commerce, credit transactions /debit, website statistics, payroll, insurance and business loans. . In addition, the company sells lines of personal, business and health/benefits insurance products; and employee payroll management and tax filing processing services. It has strategic alliances with American International Group, CTAA, Navy Federal Credit Union, Credit Union National Association, Pershing and others to provide agent services to small business clients. The company is looking to invest in the New York and Louisiana area. The company is looking to invest between $0.3 million and $3 million in businesses. It offers small business loans on terms ranging from $0.05 million to $10 million. The company also offers accounts receivable financing ranging from $0.05 million to $1.5 million. It also offers financing from $0.05 million to $10 million to owner-occupied real estate businesses with an average net income over the past 2 years that must not exceed $2.5 million. Newtek Business Services Corp., formerly known as Newtek Business Services Inc., was incorporated on August 26, 2013 and is headquartered in Boca Raton, Florida with additional offices in Lake Success, New York, Garden City , New York ; Miami, Florida; Milwaukee, Wis.; New Orleans, Louisiana; and New York, New York.

About Lyft (Get a rating)

Lyft, Inc. engages in the provision and management of an online social ridesharing community platform. It provides access to a network of shared bikes and scooters for shorter journeys and first and last mile multi-modal journeys, information on nearby transit routes and Lyft Rentals to give riders an overview of options transportation when planning any trip. The company was founded by Marcus Cohn, John Zimmer, Rajat Suri, Matt van Horn and Logan Green in 2007 and is based in San Francisco, California.



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