NU (NYSE:NU – Get Free Report) and Orion Digital (NASDAQ:ORIO – Get Free Report) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, institutional ownership, valuation, profitability, dividends, earnings and analyst recommendations.
Insider and Institutional Ownership
84.0% of NU shares are owned by institutional investors. Comparatively, 14.8% of Orion Digital shares are owned by institutional investors. 12.3% of Orion Digital shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Analyst Ratings
This is a summary of current ratings and target prices for NU and Orion Digital, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| NU | 1 | 5 | 8 | 0 | 2.50 |
| Orion Digital | 1 | 1 | 0 | 0 | 1.50 |
Profitability
This table compares NU and Orion Digital’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| NU | 18.65% | 31.59% | 4.97% |
| Orion Digital | -24.49% | -6.17% | -2.56% |
Valuation and Earnings
This table compares NU and Orion Digital”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| NU | $15.77 billion | 4.13 | $2.87 billion | $0.74 | 18.14 |
| Orion Digital | $49.11 million | 0.51 | -$6.11 million | ($0.50) | -2.10 |
NU has higher revenue and earnings than Orion Digital. Orion Digital is trading at a lower price-to-earnings ratio than NU, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
NU has a beta of 0.95, meaning that its share price is 5% less volatile than the S&P 500. Comparatively, Orion Digital has a beta of 2.53, meaning that its share price is 153% more volatile than the S&P 500.
Summary
NU beats Orion Digital on 12 of the 14 factors compared between the two stocks.
About NU
Nu Holdings Ltd. is a holding company, which engages in the provision of digital banking services. The company was founded by David Vélez Osorno, Cristina Helena Zingaretti Junqueira, and Adam Edward Wible on February 26, 2016 and is headquartered in George Town, Cayman Islands.
About Orion Digital
Mogo Inc. operates as a financial technology company in Canada and internationally. The company provides digital solutions to the consumers to get in control of their financial health. It offers Mogo app to access a digital spending account with Mogo Visa Platinum Prepaid Card; MogoCrypto that enables the buying and selling of bitcoin; MogoProtect, a free ID fraud protection and monthly credit score monitoring; MogoMortgage, a digital mortgage experience; and MogoMoney that provides access to personal loans. The company also offers Mogo Trade, a free stock trading platform with real-time stock quotes and funding; and Mogo Ventures to manage its existing investments in strategic partners and companies. In addition, it operates Carta, a digital payments software platform that enable financial technology companies, banks, and corporations to issue payment products to consumers via multiple channels, including physical, virtual, and tokenized cards, as well as payment switching and routing services. Mogo Inc. was founded in 2003 and is headquartered in Vancouver, Canada.
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