Reviewing Axos Financial (NYSE:AX) and Inter & Co. Inc. (NASDAQ:INTR)

Axos Financial (NYSE:AX) and Inter & Co. Inc. (NASDAQ:INTR) are both mid-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their valuation, earnings, risk, dividends, institutional ownership, analyst recommendations and profitability.

Insider & Institutional Ownership

83.8% of Axos Financial shares are owned by institutional investors. Comparatively, 22.9% of Inter & Co. Inc. shares are owned by institutional investors. 4.9% of Axos Financial shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Axos Financial and Inter & Co. Inc.”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Axos Financial	$1.95 billion	2.34	$432.91 million	$7.46	10.81
Inter & Co. Inc.	$1.31 billion	3.08	$168.18 million	$0.45	20.42

Axos Financial has higher revenue and earnings than Inter & Co. Inc.. Axos Financial is trading at a lower price-to-earnings ratio than Inter & Co. Inc., indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Axos Financial and Inter & Co. Inc.’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Axos Financial	22.24%	17.11%	1.82%
Inter & Co. Inc.	12.55%	11.85%	1.38%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Axos Financial and Inter & Co. Inc., as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Axos Financial	0	1	6	0	2.86
Inter & Co. Inc.	1	1	2	0	2.25

Axos Financial presently has a consensus target price of $96.83, indicating a potential upside of 20.11%. Inter & Co. Inc. has a consensus target price of $7.20, indicating a potential downside of 21.65%. Given Axos Financial’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Axos Financial is more favorable than Inter & Co. Inc..

Volatility & Risk

Axos Financial has a beta of 1.29, suggesting that its share price is 29% more volatile than the S&P 500. Comparatively, Inter & Co. Inc. has a beta of 1.13, suggesting that its share price is 13% more volatile than the S&P 500.

Summary

Axos Financial beats Inter & Co. Inc. on 12 of the 14 factors compared between the two stocks.

About Axos Financial

Axos Financial, Inc., together with its subsidiaries, provides consumer and business banking products in the United States. It operates through two segments, Banking Business and Securities Business. The company offers deposits products, including consumer and business checking, demand, savings, time deposit, money market, zero balance, and insured cash sweep accounts. It also provides residential single family, multifamily, and commercial mortgage loans; commercial real estate secured loans; commercial and industrial non-real estate, asset-backed, lines of credit, and term loans; automobile loans; fixed rate unsecured loans; and other loans, such as structure settlements, small business administration consumer loans, and securities-backed loans. In addition, the company offers ACH origination, wire transfer, commercial check printing, business bill pay and account transfer; remote deposit capture, mobile deposit, lockbox, merchant, and online payment portal; concierge banking; mobile and text message banking; and payment services, as well as debit and credit cards, and digital wallets. Further, it provides disclosed clearing services; back-office services, such as record keeping, trade reporting, accounting, general back-office support, securities and margin lending, reorganization assistance, and custody of securities; and financing to brokerage customers. The company was formerly known as BofI Holding, Inc. and changed its name to Axos Financial, Inc. in September 2018. Axos Financial, Inc. was incorporated in 1999 and is based in Las Vegas, Nevada.

About Inter & Co. Inc.

Inter & Co., Inc. Is a holding company, which engages in the provision of financial products and services. It operates through the following segments: Banking, Securities, Insurance Brokerage, Marketplace, Asset Management, Service, and Other. The Banking segment offers checking accounts cards, deposits, loans and advances, and other services through mobile application. The Securities segment is involved in the acquisition, sale and custody of securities, the structuring and distribution of securities in the capital market, and the provision of administration services to investment funds. The Insurance Brokerage segment includes insurance products underwritten by insurance companies, such as warranties, life, property and automobile insurance, and pension products, as well as consortium products provided by a third party. The Marketplace segment operates a digital platform, which offers goods and services to its customers. The Asset Management segment is composed of the operations related to the management of fund portfolios and other assets. The Service segment consists of collection and management of personal information, development and licensing of customized computer programs, development and licensing of non-customized computer programs and technical support, maintenance, and other information technology services. The company was founded on January 26, 2021 and is headquartered in Belo Horizonte, Brazil.