Head to Head Analysis: NewtekOne (NEWT) versus Its Rivals

NewtekOne (NASDAQ:NEWT) is one of 920 publicly-traded companies in the “Banks” industry, but how does it compare to its competitors? We will compare NewtekOne to similar companies based on the strength of its dividends, analyst recommendations, valuation, institutional ownership, earnings, risk and profitability.

Risk & Volatility

NewtekOne has a beta of 1.3, meaning that its share price is 30% more volatile than the S&P 500. Comparatively, NewtekOne’s competitors have a beta of 0.69, meaning that their average share price is 31% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings for NewtekOne and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NewtekOne	1	4	1	0	2.00
NewtekOne Competitors	7444	30086	27632	1436	2.35

NewtekOne presently has a consensus price target of $16.33, suggesting a potential upside of 41.78%. As a group, “Banks” companies have a potential upside of 15.43%. Given NewtekOne’s higher possible upside, equities analysts plainly believe NewtekOne is more favorable than its competitors.

Dividends

NewtekOne pays an annual dividend of $0.76 per share and has a dividend yield of 6.6%. NewtekOne pays out 34.2% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 13.4% and pay out 29.3% of their earnings in the form of a dividend. NewtekOne has increased its dividend for 1 consecutive years. NewtekOne lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Earnings and Valuation

This table compares NewtekOne and its competitors revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
NewtekOne	$276.53 million	N/A	5.19
NewtekOne Competitors	$6.29 billion	$4.08 billion	18.94

NewtekOne’s competitors have higher revenue and earnings than NewtekOne. NewtekOne is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares NewtekOne and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NewtekOne	N/A	N/A	N/A
NewtekOne Competitors	3.80%	5.40%	0.17%

Institutional and Insider Ownership

38.3% of NewtekOne shares are owned by institutional investors. Comparatively, 47.7% of shares of all “Banks” companies are owned by institutional investors. 5.9% of NewtekOne shares are owned by company insiders. Comparatively, 9.8% of shares of all “Banks” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

NewtekOne competitors beat NewtekOne on 12 of the 14 factors compared.

About NewtekOne

NewtekOne, Inc. operates as the bank holding company for Newtek Bank, National Association that engages in the provision of various business and financial solutions under the Newtek brand name to the small- and medium-sized business market. The company accepts demand, savings, NOW, money market, and time deposits; and provides loans including SBA loans, commercial and industrial loans, and commercial real estate loans. It is also involved in the provision of electronic payment processing services comprising credit and debit card processing services, check approval services, processing equipment, and software, as well as cloud-based Point of Sale systems for a various restaurant, retail, assisted living, taxi cabs, parks, and golf course businesses. In addition, it offers wholesale brokerage insurance agency services; and payroll management, and related payment and tax reporting services to independent business owners. Further, the company provides website hosting, dedicated server hosting, cloud hosting, web design and development, internet marketing, ecommerce, data storage, backup and disaster recovery, and other related services, including consulting and implementing technology solutions for enterprise and commercial clients as well as SMBs. The company was formerly known as Newtek Business Services Corp. and changed its name to NewtekOne, Inc. in January 2023. NewtekOne, Inc. was founded in 1998 and is headquartered in Boca Raton, Florida.