Head to Head Analysis: SHF (NASDAQ:SHFS) & Chime Financial (NASDAQ:CHYM)

Chime Financial (NASDAQ:CHYM) and SHF (NASDAQ:SHFS) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, earnings, profitability, analyst recommendations, risk, institutional ownership and dividends.

Analyst Ratings

This is a breakdown of current ratings for Chime Financial and SHF, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Chime Financial	1	2	16	3	2.95
SHF	1	0	0	0	1.00

Chime Financial currently has a consensus price target of $36.53, suggesting a potential upside of 34.04%. Given Chime Financial’s stronger consensus rating and higher probable upside, equities analysts plainly believe Chime Financial is more favorable than SHF.

Valuation and Earnings

This table compares Chime Financial and SHF”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Chime Financial	$2.19 billion	4.72	-$1.01 billion	($0.07)	-389.29
SHF	$7.67 million	0.08	-$2.16 million	($0.99)	-1.19

SHF has lower revenue, but higher earnings than Chime Financial. Chime Financial is trading at a lower price-to-earnings ratio than SHF, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Chime Financial and SHF’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Chime Financial	-0.74%	-1.28%	-0.92%
SHF	-47.33%	-90.25%	-41.71%

Volatility & Risk

Chime Financial has a beta of 0.84, indicating that its share price is 16% less volatile than the S&P 500. Comparatively, SHF has a beta of 0.87, indicating that its share price is 13% less volatile than the S&P 500.

Insider & Institutional Ownership

29.2% of SHF shares are held by institutional investors. 12.3% of Chime Financial shares are held by company insiders. Comparatively, 5.8% of SHF shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Chime Financial beats SHF on 11 of the 15 factors compared between the two stocks.

About Chime Financial

Chime is a financial technology company that partners with federally regulated, FDIC-insured banks—The Bancorp Bank, N.A. and Stride Bank, N.A., Members FDIC—to provide consumer banking products and services. The company’s model is designed to eliminate common fees and simplify access to basic financial services.

Chime does not charge overdraft fees, monthly service fees, or require minimum balances. All account balances are held at partner banks and protected by applicable regulatory safeguards to ensure funds remain secure and accessible.

About SHF

SHF Holdings, Inc., through its subsidiaries, provides access to banking, lending, and other financial services to financial institutions serving the cannabis industry. The company, through its proprietary platform, offers access to business checking and savings accounts, cash management accounts, savings and investment options, commercial lending, courier services, remote deposit services, automated clearing house payments and origination, and wire payments. Its services allow cannabis related businesses to obtain services from financial institutions that allow them to run their business with enhanced financial insight into their business and access to resources. The company was founded in 2015 and is based in Golden, Colorado. SHF Holdings, Inc. operates as a subsidiary of Partner Colorado Credit Union.