NU (NYSE:NU) & Orion Digital (NASDAQ:ORIO) Critical Review

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

NU currently has a consensus price target of $18.02, suggesting a potential upside of 34.20%. Given NU’s stronger consensus rating and higher possible upside, equities analysts plainly believe NU is more favorable than Orion Digital.

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

(Get Free Report)

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

(Get Free Report)

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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