Contrasting NewtekOne (NASDAQ:NEWT) & Fold (NASDAQ:FLD)

Fold (NASDAQ:FLD) and NewtekOne (NASDAQ:NEWT) are both small-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, risk, analyst recommendations, profitability, institutional ownership, dividends and earnings.

Earnings and Valuation

This table compares Fold and NewtekOne”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fold	$7.35 million	11.76	-$1.87 million	($0.75)	-2.39
NewtekOne	$383.33 million	1.05	$58.18 million	$2.19	6.37

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

Institutional and Insider Ownership

56.9% of Fold shares are owned by institutional investors. Comparatively, 38.4% of NewtekOne shares are owned by institutional investors. 66.8% of Fold shares are owned by company insiders. Comparatively, 6.7% of NewtekOne shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Fold and NewtekOne’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fold	N/A	60.59%	26.06%
NewtekOne	15.51%	19.52%	2.68%

Analyst Recommendations

This is a summary of current ratings for Fold and NewtekOne, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fold	1	0	2	1	2.75
NewtekOne	0	4	0	1	2.40

Fold presently has a consensus target price of $7.83, suggesting a potential upside of 337.62%. NewtekOne has a consensus target price of $14.75, suggesting a potential upside of 5.81%. Given Fold’s stronger consensus rating and higher possible upside, analysts clearly believe Fold is more favorable than NewtekOne.

Volatility and Risk

Fold has a beta of 0.18, meaning that its share price is 82% less volatile than the S&P 500. Comparatively, NewtekOne has a beta of 1.25, meaning that its share price is 25% more volatile than the S&P 500.

Summary

Fold beats NewtekOne on 8 of the 14 factors compared between the two stocks.

About Fold

FTAC Emerald Acquisition Corp. does not have significant operations. It intends to effect a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, and similar business combination with one or more businesses or assets operating in the clean/renewable energy, water sustainability, agricultural technology, shared economy software, and mobility sectors. The company was formerly known as Emerald ESG Acquisition Corp. FTAC Emerald Acquisition Corp. was incorporated in 2021 and is based in Philadelphia, Pennsylvania.

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.