Head to Head Comparison: Futu (NASDAQ:FUTU) versus Dave (NASDAQ:DAVE)

Dave (NASDAQ:DAVE) and Futu (NASDAQ:FUTU) are both business services companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, dividends, risk, profitability, analyst recommendations and institutional ownership.

Analyst Recommendations

This is a breakdown of recent recommendations for Dave and Futu, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dave	0	2	10	0	2.83
Futu	0	2	6	2	3.00

Dave currently has a consensus target price of $304.25, indicating a potential upside of 63.58%. Futu has a consensus target price of $203.67, indicating a potential upside of 22.72%. Given Dave’s higher possible upside, equities analysts plainly believe Dave is more favorable than Futu.

Profitability

This table compares Dave and Futu’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Dave	29.85%	65.86%	41.56%
Futu	47.11%	30.59%	5.03%

Institutional & Insider Ownership

18.0% of Dave shares are held by institutional investors. 28.5% of Dave shares are held by insiders. Comparatively, 35.2% of Futu shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Volatility & Risk

Dave has a beta of 3.9, indicating that its stock price is 290% more volatile than the S&P 500. Comparatively, Futu has a beta of 0.2, indicating that its stock price is 80% less volatile than the S&P 500.

Valuation and Earnings

This table compares Dave and Futu”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dave	$347.10 million	7.23	$57.87 million	$10.09	18.43
Futu	$20.84 billion	1.11	$700.73 million	$8.93	18.58

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

Summary

Dave beats Futu on 8 of the 15 factors compared between the two stocks.

About Dave

Dave, Inc. is a digital banking service. Its products include a budgeting tool to help members manage their upcoming bills to avoid overspending, cash advances through its flagship ExtraCash product to help members avoid punitive overdraft fees, a Side Hustle product, where Dave helps connect members with supplemental work opportunities, and Dave Banking, a modern checking account experience with valuable tools for building long-term financial health. The company was founded by Jason Wilk, Paras Chitrakar, and John Wolanin in October 2015 and is headquartered in Los Angeles, CA.

About Futu

Futu Holdings Limited provides digitalized securities brokerage and wealth management product distribution service in Hong Kong and internationally. It offers online financial services, including securities and derivative trades brokerage, margin financing and fund distribution services through its Futubull and Moomoo digital platforms. The company also provides financial information and online community services; online wealth management services under the Money Plus brand name through its Futubull and moomoo platforms, which provides its client access to mutual funds, private funds, bonds, structured products, and other wealth management products; market data and information services; and NiuNiu Community, which serves as an open forum for users and clients to share insights, ask questions, and exchange ideas. Futu Holdings Limited was founded in 2007 and is headquartered in Sheung Wan, Hong Kong.