Green Dot (NYSE:GDOT – Get Free Report) and Cantaloupe (NASDAQ:CTLP – Get Free Report) are both small-cap business services companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, earnings, valuation, analyst recommendations, risk, institutional ownership and dividends.
Insider and Institutional Ownership
92.6% of Green Dot shares are owned by institutional investors. Comparatively, 75.8% of Cantaloupe shares are owned by institutional investors. 1.4% of Green Dot shares are owned by company insiders. Comparatively, 7.1% of Cantaloupe shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Analyst Ratings
This is a summary of recent ratings and price targets for Green Dot and Cantaloupe, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Green Dot | 2 | 5 | 1 | 0 | 1.88 |
| Cantaloupe | 1 | 7 | 0 | 0 | 1.88 |
Volatility & Risk
Green Dot has a beta of 0.84, meaning that its share price is 16% less volatile than the S&P 500. Comparatively, Cantaloupe has a beta of 1.14, meaning that its share price is 14% more volatile than the S&P 500.
Profitability
This table compares Green Dot and Cantaloupe’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Green Dot | -2.33% | 9.81% | 1.59% |
| Cantaloupe | 19.21% | 9.58% | 6.25% |
Valuation & Earnings
This table compares Green Dot and Cantaloupe”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Green Dot | $1.72 billion | 0.41 | -$26.70 million | ($0.85) | -15.11 |
| Cantaloupe | $312.57 million | 2.50 | $64.53 million | $0.21 | 50.43 |
Cantaloupe has lower revenue, but higher earnings than Green Dot. Green Dot is trading at a lower price-to-earnings ratio than Cantaloupe, indicating that it is currently the more affordable of the two stocks.
Summary
Cantaloupe beats Green Dot on 9 of the 13 factors compared between the two stocks.
About Green Dot
Green Dot Corporation, a financial technology and registered bank holding company, provides various financial services to consumers and businesses in the United States. It operates through three segments: Consumer Services, Business to Business Services, and Money Movement Services. The company provides deposit account programs, including consumer and small business checking account products, network-branded reloadable prepaid debit cards and gift cards, and secured credit programs. It offers money processing services, such as cash transfer services that enable consumers to deposit or pick up cash and pay bills with cash at the point-of-sale at any participating retailer; and simply paid disbursement services, which enable wages and authorized funds disbursement to its deposit account programs and accounts issued by any third-party bank or program manager. In addition, the company offers tax processing services comprising tax refund transfers, which provide the processing technology to facilitate receipt of a taxpayers' refund proceeds; small business lending to independent tax preparation providers that seek small advances; and fast cash advance, a loan that enables tax refund recipients. Green Dot Corporation was incorporated in 1999 and is headquartered in Austin, Texas.
About Cantaloupe
Cantaloupe, Inc., a digital payments and software services company, provides technology solutions for self-service commerce market. The company offers integrated solutions for payments processing, logistics, and back-office management. It also provides G11 cashless and pulse kits that are 4G LTE digital payment devices for payment and consumer engagement applications; G11 chip kit, a digital reader that accepts contact EMV and contactless EMV payment methods; Engage series comprising Engage and Engage Combo, which are digital touchscreen devices that offers networking, security, and interactivity payment methods; and card touchscreen card readers, including P66, P100, P100Pro, and P30. In addition, the company offers self-checkout kiosks,?smart store?concepts, and the Cantaloupe Go management platform comprising Go Mini, Go MiniX, Go Plus100, Go Plus200, Go Plus300, Go Max, Cooler Cafe, and Smart Market; Go Portal, a robust cloud-based platform; and Cheq products, which supports attended and unattended self-service kiosks for the stadium, entertainment, and festival sectors. Further, it provides integrated software services for payment or asset tracking devices in the field to connect into platform for advanced data management, analytics, route scheduling, and loyalty and reward programs; and a range of self-service hardware solutions for vending, micro-markets, amusement, arcade, commercial laundry, air/vacuum, car wash, and other applications. Additionally, the company offers professional, network infrastructure, card processing, and customer/consumer services. Cantaloupe, Inc. was formerly known as USA Technologies, Inc. The company was incorporated in 1992 and is headquartered in Malvern, Pennsylvania.
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