Drone Delivery Can (NYSE: FLT) and Newtek Business Services Corp. (NASDAQ:NEWT) are both transaction & payment services companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, earnings, institutional ownership, dividends, valuation, analyst recommendations and risk.

Dividends

Newtek Business Services Corp. pays an annual dividend of $1.76 per share and has a dividend yield of 10.3%. Drone Delivery Can does not pay a dividend. Newtek Business Services Corp. pays out 106.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Drone Delivery Can and Newtek Business Services Corp., as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Drone Delivery Can 0 0 13 1 3.07
Newtek Business Services Corp. 0 3 0 0 2.00

Drone Delivery Can presently has a consensus target price of C$184.58, indicating a potential upside of 2.23%. Newtek Business Services Corp. has a consensus target price of $18.00, indicating a potential upside of 5.70%. Given Newtek Business Services Corp.’s higher probable upside, analysts plainly believe Newtek Business Services Corp. is more favorable than Drone Delivery Can.

Profitability

This table compares Drone Delivery Can and Newtek Business Services Corp.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Drone Delivery Can 35.10% 23.80% 7.59%
Newtek Business Services Corp. 78.03% 7.97% 4.20%

Volatility & Risk

Drone Delivery Can has a beta of 1.5, meaning that its stock price is 50% more volatile than the S&P 500. Comparatively, Newtek Business Services Corp. has a beta of 1.44, meaning that its stock price is 44% more volatile than the S&P 500.

Earnings & Valuation

This table compares Drone Delivery Can and Newtek Business Services Corp.’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Drone Delivery Can N/A N/A N/A C$5.88 30.71
Newtek Business Services Corp. $30.97 million 9.90 $27.30 million $1.65 10.32

Newtek Business Services Corp. has higher revenue and earnings than Drone Delivery Can. Newtek Business Services Corp. is trading at a lower price-to-earnings ratio than Drone Delivery Can, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

22.5% of Newtek Business Services Corp. shares are owned by institutional investors. 6.7% of Newtek Business Services Corp. shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Drone Delivery Can beats Newtek Business Services Corp. on 8 of the 14 factors compared between the two stocks.

About Drone Delivery Can

FleetCor Technologies, Inc. is a provider of workforce payment products. The Company offers fuel card payments product solutions, corporate payments products, toll products, lodging cards and gift cards. The Company operates through two segments: North America and International. Its products are sold to businesses, retailers, oil companies and marketers and government entities. Its payment programs enable its customers to manage and control their commercial payments, card programs, and employee spending and provide card-accepting merchants with a customer base that can increase their sales and customer loyalty. The Company also provides a suite of fleet related and workforce payment products, including mobile telematics services, fleet maintenance management and employee benefit and transportation related payments. As of December 31, 2016, its products were used in 53 countries around the world, with its primary geographies in the United States, Brazil and the United Kingdom.

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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