Contrasting Tenet Fintech Group (OTCMKTS:PKKFF) and Green Dot (NYSE:GDOT)

Tenet Fintech Group (OTCMKTS:PKKFF) and Green Dot (NYSE:GDOT) are both small-cap business services companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, valuation, risk, dividends, institutional ownership, analyst recommendations and earnings.

Analyst Ratings

This is a summary of recent ratings and price targets for Tenet Fintech Group and Green Dot, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tenet Fintech Group	0	0	0	0	0.00
Green Dot	1	1	2	1	2.60

Green Dot has a consensus target price of $13.00, suggesting a potential downside of 4.57%. Given Green Dot’s stronger consensus rating and higher possible upside, analysts clearly believe Green Dot is more favorable than Tenet Fintech Group.

Insider & Institutional Ownership

0.3% of Tenet Fintech Group shares are owned by institutional investors. Comparatively, 92.6% of Green Dot shares are owned by institutional investors. 1.4% of Green Dot shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Volatility and Risk

Tenet Fintech Group has a beta of 1.85, indicating that its stock price is 85% more volatile than the S&P 500. Comparatively, Green Dot has a beta of 0.75, indicating that its stock price is 25% less volatile than the S&P 500.

Earnings and Valuation

This table compares Tenet Fintech Group and Green Dot”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tenet Fintech Group	$31.17 million	0.34	-$56.92 million	($0.32)	-0.14
Green Dot	$1.72 billion	0.43	-$26.70 million	($0.44)	-30.96

Green Dot has higher revenue and earnings than Tenet Fintech Group. Green Dot is trading at a lower price-to-earnings ratio than Tenet Fintech Group, indicating that it is currently the more affordable of the two stocks.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Tenet Fintech Group	N/A	N/A	N/A
Green Dot	-1.24%	9.93%	1.66%

Summary

Green Dot beats Tenet Fintech Group on 11 of the 15 factors compared between the two stocks.

About Tenet Fintech Group

Tenet Fintech Group Inc., through its subsidiaries, provides various analytics and AI-based services to small-and-medium businesses and financial institutions. It offers Business Hub, a global ecosystem where analytics and AI are used to create opportunities and facilitate B2B transactions among its members. The company was formerly known as Peak Fintech Group Inc. and changed its name to Tenet Fintech Group Inc. in November 2021. Tenet Fintech Group Inc. was incorporated in 2008 and is headquartered in Toronto, Canada.

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.