NerdWallet (NASDAQ:NRDS) and QXO (NASDAQ:QXO) Head-To-Head Contrast

QXO (NASDAQ:QXO) and NerdWallet (NASDAQ:NRDS) are both business services companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, earnings, risk, dividends, analyst recommendations, institutional ownership and valuation.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for QXO and NerdWallet, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
QXO	0	0	0	0	0.00
NerdWallet	0	1	4	0	2.80

NerdWallet has a consensus target price of $17.00, suggesting a potential upside of 66.67%. Given NerdWallet’s stronger consensus rating and higher possible upside, analysts plainly believe NerdWallet is more favorable than QXO.

Valuation and Earnings

This table compares QXO and NerdWallet”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
QXO	$56.84 million	88.20	-$1.07 million	($9.12)	-1.34
NerdWallet	$687.60 million	1.09	-$11.80 million	$0.40	25.50

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

Institutional and Insider Ownership

58.7% of QXO shares are held by institutional investors. Comparatively, 38.8% of NerdWallet shares are held by institutional investors. 51.3% of QXO shares are held by company insiders. Comparatively, 45.9% of NerdWallet shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Volatility and Risk

QXO has a beta of 2.28, suggesting that its share price is 128% more volatile than the S&P 500. Comparatively, NerdWallet has a beta of 1.33, suggesting that its share price is 33% more volatile than the S&P 500.

Profitability

This table compares QXO and NerdWallet’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
QXO	30.08%	1.58%	1.30%
NerdWallet	4.42%	-2.08%	-1.73%

Summary

QXO beats NerdWallet on 8 of the 14 factors compared between the two stocks.

About QXO

QXO, Inc. operates as a business application, technology, and consulting company in North America. The company provides solutions for accounting and business management, financial reporting, enterprise resource planning, human capital management, warehouse management systems, customer relationship management, and business intelligence. It also offers value-added services that focuses on consulting and professional, specialized programming, training, and technical support services. In addition, the company provides information technology managed services, such as cybersecurity, application hosting, disaster recovery, business continuity, cloud, and other services; and data back-up, network maintenance, and upgrade services. It serves small and medium-sized businesses primarily in the manufacturing, distribution, and service industries. QXO, Inc. is headquartered in Greenwich, Connecticut.

About NerdWallet

NerdWallet, Inc. operates a digital platform that provides consumer-driven advice about personal finance by connecting individuals and small and mid-sized businesses with financial products providers in the United States, the United Kingdom, Australia, and Canada. Its platform offers guidance to consumers through educational content, tools and calculators, and product marketplaces, as well as through NerdWallet app for various financial products, including credit cards, mortgages, insurance, SMB products, personal loans, banking, investing, and student loans. The company was founded in 2009 and is based in San Francisco, California.