NewtekOne (NASDAQ:NEWT) versus CTT Correios de Portugal (OTCMKTS:CTTPY) Critical Comparison

NewtekOne (NASDAQ:NEWT) and CTT Correios de Portugal (OTCMKTS:CTTPY) are both small-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, profitability, risk, institutional ownership, earnings, dividends and analyst recommendations.

Volatility and Risk

NewtekOne has a beta of 1.26, suggesting that its share price is 26% more volatile than the S&P 500. Comparatively, CTT Correios de Portugal has a beta of -0.1, suggesting that its share price is 110% less volatile than the S&P 500.

Profitability

This table compares NewtekOne and CTT Correios de Portugal’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NewtekOne	14.65%	19.16%	2.67%
CTT Correios de Portugal	4.06%	16.36%	0.86%

Analyst Recommendations

This is a summary of current ratings and target prices for NewtekOne and CTT Correios de Portugal, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NewtekOne	0	4	0	1	2.40
CTT Correios de Portugal	0	0	0	0	0.00

NewtekOne presently has a consensus target price of $14.25, suggesting a potential upside of 35.97%. Given NewtekOne’s stronger consensus rating and higher probable upside, equities analysts clearly believe NewtekOne is more favorable than CTT Correios de Portugal.

Dividends

NewtekOne pays an annual dividend of $0.76 per share and has a dividend yield of 7.3%. CTT Correios de Portugal pays an annual dividend of $0.18 per share and has a dividend yield of 1.1%. NewtekOne pays out 37.8% of its earnings in the form of a dividend. CTT Correios de Portugal pays out 23.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. NewtekOne has raised its dividend for 1 consecutive years. NewtekOne is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Valuation & Earnings

This table compares NewtekOne and CTT Correios de Portugal”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NewtekOne	$338.73 million	0.81	$50.85 million	$2.01	5.21
CTT Correios de Portugal	$1.20 billion	0.91	$49.28 million	$0.76	21.37

NewtekOne has higher earnings, but lower revenue than CTT Correios de Portugal. NewtekOne is trading at a lower price-to-earnings ratio than CTT Correios de Portugal, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

38.4% of NewtekOne shares are owned by institutional investors. 6.7% of NewtekOne shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

NewtekOne beats CTT Correios de Portugal on 13 of the 17 factors compared between the two stocks.

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.

About CTT Correios de Portugal

CTT – Correios De Portugal, S.A., together with its subsidiaries, provides postal and financial services worldwide. It operates through Mail, Express & Parcels, Financial Services & Retail, and Bank segments. The company offers courier and urgent mail transport services; postal financial services; and banking services. It also engages in the business of payments related to collection of invoices and fines. In addition, the company enables the payment of various services and utilities through a network of approximately 5,000 agents covering business outlets as stationery stores, tobacco shops, kiosks, and supermarkets. It operates a retail network of 566 post offices; 1,808 postal agencies; 223 postal delivery offices; 4,576 postal delivery routes; and a fleet of 3,925 vehicles. The company was formerly known as Correio Publico. CTT – Correios De Portugal, S.A. was founded in 1520 and is headquartered in Lisbon, Portugal.