NewtekOne (NASDAQ:NEWT) vs. Greenidge Generation (NASDAQ:GREE) Critical Review

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

Volatility & Risk

NewtekOne has a beta of 1.29, suggesting that its share price is 29% more volatile than the S&P 500. Comparatively, Greenidge Generation has a beta of 3.07, suggesting that its share price is 207% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for NewtekOne and Greenidge Generation, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NewtekOne	0	2	1	1	2.75
Greenidge Generation	1	0	0	0	1.00

NewtekOne presently has a consensus target price of $15.00, suggesting a potential upside of 9.33%. Given NewtekOne’s stronger consensus rating and higher probable upside, equities research analysts clearly believe NewtekOne is more favorable than Greenidge Generation.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
NewtekOne	16.15%	19.00%	2.50%
Greenidge Generation	10.38%	-12.10%	12.35%

Valuation & Earnings

This table compares NewtekOne and Greenidge Generation”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NewtekOne	$383.33 million	1.03	$60.51 million	$2.27	6.04
Greenidge Generation	$58.78 million	0.43	$5.29 million	$0.38	3.97

NewtekOne has higher revenue and earnings than Greenidge Generation. Greenidge Generation 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

38.4% of NewtekOne shares are owned by institutional investors. Comparatively, 8.5% of Greenidge Generation shares are owned by institutional investors. 5.9% of NewtekOne shares are owned by insiders. Comparatively, 28.4% of Greenidge Generation shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

NewtekOne beats Greenidge Generation on 12 of the 15 factors compared between the two stocks.

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.

About Greenidge Generation

Greenidge Generation Holdings Inc. operates as an integrated cryptocurrency datacenter and power generation company. The company owns and operates cryptocurrency datacenter in New York, as well as hosts, powers, and provides technical support and other related services to bitcoin mining equipment owned by customers. It also owns and operates a 106 MW nameplate capacity power generation facility. The company was founded in 1937 and is based in Fairfield, Connecticut.