Critical Contrast: Green Dot (NYSE:GDOT) & Binah Capital Group (NASDAQ:BCG)

Binah Capital Group (NASDAQ:BCG) and Green Dot (NYSE:GDOT) are both small-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, profitability, analyst recommendations, risk, valuation, institutional ownership and earnings.

Valuation & Earnings

This table compares Binah Capital Group and Green Dot”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Binah Capital Group	$160.39 million	0.34	$570,000.00	N/A	N/A
Green Dot	$1.58 billion	0.41	$6.72 million	($0.47)	-25.96

Green Dot has higher revenue and earnings than Binah Capital Group.

Analyst Recommendations

This is a breakdown of recent recommendations for Binah Capital Group and Green Dot, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Binah Capital Group	0	0	0	0	N/A
Green Dot	1	2	1	0	2.00

Green Dot has a consensus price target of $10.75, suggesting a potential downside of 11.89%. Given Green Dot’s higher possible upside, analysts clearly believe Green Dot is more favorable than Binah Capital Group.

Profitability

This table compares Binah Capital Group and Green Dot’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Binah Capital Group	N/A	-5.28%	-7.16%
Green Dot	-3.41%	4.01%	0.67%

Insider & Institutional Ownership

5.0% of Binah Capital Group shares are owned by institutional investors. Comparatively, 92.6% of Green Dot shares are owned by institutional investors. 83.0% of Binah Capital Group shares are owned by insiders. Comparatively, 1.1% of Green Dot shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Volatility & Risk

Binah Capital Group has a beta of 0.43, suggesting that its share price is 57% less volatile than the S&P 500. Comparatively, Green Dot has a beta of 0.91, suggesting that its share price is 9% less volatile than the S&P 500.

Summary

Green Dot beats Binah Capital Group on 9 of the 11 factors compared between the two stocks.

About Binah Capital Group

Binah Capital Group, Inc., together with its subsidiaries, operates in the wealth management industry. The company provides access to stock, bond, exchange-traded fund, and options execution services; and research, compliance, supervision, and accounting and related services for financial advisors. It also offers mutual funds and insurance products, as well as alternative investments, such as non-traded real estate investment trusts, unit trusts, and fixed and variable annuities. The company was founded in 2016 and is headquartered in Albany, New York. Binah Capital Group, Inc. operates as a subsidiary of MHC Securities, LLC.

About Green Dot

Green Dot Corporation, a financial technology and registered bank holding company, provides various financial services to consumers and businesses in the United States. It operates through three segments: Consumer Services, Business to Business Services, and Money Movement Services. The company provides deposit account programs, including consumer and small business checking account products, network-branded reloadable prepaid debit cards and gift cards, and secured credit programs. It offers money processing services, such as cash transfer services that enable consumers to deposit or pick up cash and pay bills with cash at the point-of-sale at any participating retailer; and simply paid disbursement services, which enable wages and authorized funds disbursement to its deposit account programs and accounts issued by any third-party bank or program manager. In addition, the company offers tax processing services comprising tax refund transfers, which provide the processing technology to facilitate receipt of a taxpayers' refund proceeds; small business lending to independent tax preparation providers that seek small advances; and fast cash advance, a loan that enables tax refund recipients. Green Dot Corporation was incorporated in 1999 and is headquartered in Austin, Texas.