Loomis (OTCMKTS:LOIMF) and Green Dot (NYSE:GDOT) Financial Analysis

Loomis (OTCMKTS:LOIMF) and Green Dot (NYSE:GDOT) are both business services companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, analyst recommendations, institutional ownership, profitability, risk, earnings and dividends.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Loomis	5.73%	13.56%	4.52%
Green Dot	-1.24%	9.93%	1.66%

Earnings and Valuation

This table compares Loomis 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
Loomis	$2.88 billion	1.07	$155.24 million	$2.61	16.43
Green Dot	$1.72 billion	0.39	-$26.70 million	($0.44)	-27.48

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

Volatility & Risk

Loomis has a beta of -1.54, meaning that its stock price is 254% less volatile than the S&P 500. Comparatively, Green Dot has a beta of 0.8, meaning that its stock price is 20% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and price targets for Loomis and Green Dot, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Loomis	0	0	0	0	0.00
Green Dot	2	2	2	1	2.29

Green Dot has a consensus target price of $13.50, suggesting a potential upside of 11.67%. Given Green Dot’s stronger consensus rating and higher possible upside, analysts plainly believe Green Dot is more favorable than Loomis.

Insider & Institutional Ownership

92.6% of Green Dot shares are held by institutional investors. 1.4% of Green Dot shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Loomis beats Green Dot on 8 of the 15 factors compared between the two stocks.

About Loomis

Loomis AB (publ) provides solutions for the distribution, payments, handling, storage, and recycling of cash and other valuables. The company offers a range of solutions for cash in transit, cash management services, foreign exchange services, automated teller machines, automated solutions, and international valuables logistics, as well as operates Loomis Pay, a payment service that enables processing of various types of payment methods, such as card, cash, and digital alternatives. It serves financial institutions, banks, retailers, commercial enterprises, and other customers, as well as public sector in Sweden, the United States, France, Switzerland, Spain, the United Kingdom, and internationally. Loomis AB (publ) was founded in 1852 and is headquartered in Stockholm, Sweden.

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.