Critical Analysis: Green Dot (NYSE:GDOT) and RB Global (NYSE:RBA)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Green Dot	-4.75%	6.93%	1.10%
RB Global	9.33%	11.12%	5.01%

Analyst Recommendations

This is a summary of recent recommendations and price targets for Green Dot and RB Global, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Green Dot	2	4	1	0	1.86
RB Global	0	1	7	0	2.88

Green Dot currently has a consensus price target of $13.56, indicating a potential upside of 11.03%. RB Global has a consensus price target of $125.13, indicating a potential upside of 17.71%. Given RB Global’s stronger consensus rating and higher possible upside, analysts clearly believe RB Global is more favorable than Green Dot.

Volatility and Risk

Green Dot has a beta of 0.81, suggesting that its stock price is 19% less volatile than the S&P 500. Comparatively, RB Global has a beta of 0.57, suggesting that its stock price is 43% less volatile than the S&P 500.

Institutional & Insider Ownership

92.6% of Green Dot shares are held by institutional investors. Comparatively, 95.4% of RB Global shares are held by institutional investors. 1.4% of Green Dot shares are held by insiders. Comparatively, 0.6% of RB Global shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Green Dot and RB Global”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Green Dot	$2.08 billion	0.33	-$98.87 million	($1.78)	-6.86
RB Global	$4.59 billion	4.31	$423.10 million	$2.04	52.11

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

Summary

RB Global beats Green Dot on 12 of the 14 factors compared between the two stocks.

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.

About RB Global

RB Global, Inc., an omnichannel marketplace, provides insights, services, and transaction solutions for buyers and sellers of commercial assets and vehicles worldwide. Its marketplace brands include Ritchie Bros., an auctioneer of commercial assets and vehicles offering online bidding; IAA, a digital marketplace connecting vehicle buyers and sellers; Rouse Services, which provides asset management, data-driven intelligence, and performance benchmarking system; SmartEquip, a technology platform that supports customers' management of the equipment lifecycle; and Veritread, an online marketplace for heavy haul transport solution. The company's brands include GovPlanet, an online marketplace for the sale of government and military assets; RB Auction, an onsite and online marketplace for selling and buying used equipment; IronPlanet, an online marketplace for selling and buying used equipment; Marketplace-E, an online solution that make offers/buy now format; Rouse Appraisals, a certified appraisal service solution; Ritchie List Mascus, an online equipment listing service and B2B dealer portal; CSAToday, an online reporting and analysis tool that gives sellers the ability to manage their vehicle assets and monitor sales performance; and Catastrophe Response Services. In addition, it offers title, data, transportation and logistics, refurbishing, inspection, and financial services. It serves customers across various asset classes, including automotive, commercial transportation, construction, government surplus, lifting and material handling, energy, mining, and agriculture. RB Global, Inc. was founded in 1958 and is headquartered in Westchester, Illinois.