NewtekOne (NEWT) versus Its Rivals Financial Survey

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

Profitability

This table compares NewtekOne and its rivals’ 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%

Earnings & Valuation

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

Insider & Institutional Ownership

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

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 raised its dividend for 1 consecutive years. NewtekOne lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Analyst Ratings

This is a breakdown of current recommendations for NewtekOne and its rivals, 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 target price of $16.33, indicating a potential upside of 41.78%. As a group, “Banks” companies have a potential upside of 15.43%. Given NewtekOne’s higher possible upside, analysts plainly believe NewtekOne is more favorable than its rivals.

Volatility & Risk

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

Summary

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

NewtekOne Company Profile

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.