Head to Head Review: Green Dot (GDOT) & LexinFintech (LX)

Green Dot (NYSE:GDOT) and LexinFintech (NASDAQ:LX) are both business services companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, profitability, risk, analyst recommendations, valuation, institutional ownership and dividends.

Valuation & Earnings

This table compares Green Dot and LexinFintech’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Green Dot $890.15 million 4.30 $85.88 million $1.58 46.09
LexinFintech $857.97 million 1.78 $36.94 million $0.22 42.27



Green Dot has higher revenue and earnings than LexinFintech. LexinFintech is trading at a lower price-to-earnings ratio than Green Dot, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current ratings for Green Dot and LexinFintech, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Green Dot 0 5 7 0 2.58
LexinFintech 0 1 2 0 2.67

Green Dot presently has a consensus price target of $82.73, indicating a potential upside of 13.61%. LexinFintech has a consensus price target of $20.27, indicating a potential upside of 117.92%. Given LexinFintech’s stronger consensus rating and higher possible upside, analysts clearly believe LexinFintech is more favorable than Green Dot.

Profitability

This table compares Green Dot and LexinFintech’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Green Dot 12.73% 14.26% 5.16%
LexinFintech N/A N/A N/A

Institutional and Insider Ownership

84.3% of Green Dot shares are owned by institutional investors. Comparatively, 7.0% of LexinFintech shares are owned by institutional investors. 9.7% of Green Dot shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Green Dot beats LexinFintech on 11 of the 13 factors compared between the two stocks.

Green Dot Company Profile

Green Dot Corporation, together with its subsidiaries, operates as a pro-consumer bank holding company that provides personal banking for the masses. It operates through two segments, Account Services and Processing, and Settlement Services. The company offers deposit as account programs, such reloadable prepaid debit cards under the consumer brand names of GPR cards, consumer checking accounts, small business checking accounts, network-branded gift cards, secured credit cards, and other financial services. It also provides swipe reload system for crediting cash onto an enabled payment card by swiping the payment card at the point of sale through Green Dot Network; MoneyPak, a product that allows a consumer to add funds to accounts; and e-cash remittance, a service that allows a consumer to transfer funds to a smartphone, as well as offers disbursement services through Simply Paid platform. The company, through its subsidiary, Green Dot Bank, provides prepaid cards, debit cards, checking accounts, secured credit cards, payroll debit cards, consumer cash processing services, wage disbursements, and tax refund processing services, as well as issuing, settlement, and capital management services. In addition, it offers mobile banking, loan disbursement accounts, mobile P2P, money transfer, instant payment, and processing and settlement services. It markets and sells its products and services through approximately 100,000 retail stores, various direct-to-consumer Websites, thousands of tax preparation offices, and various apps available in the 2 app stores, as well as distributes through various enterprise-scale ‘Banking as a Service' partnerships, and Green Dot, a banking franchise in the United States. The company was formerly known as Next Estate Communications, Inc. and changed its name to Green Dot Corporation in October 2005. Green Dot Corporation was incorporated in 1999 and is headquartered in Pasadena, California.

LexinFintech Company Profile

LexinFintech Holdings Ltd., through its subsidiaries, operates as an online consumer finance platform for young adults in the People's Republic of China. The company operates Fenqile, an online consumer finance platform that offers personal installment loans, installment purchase loans, and other loan products, as well as Le Card credit line. It also matches customer loans with diversified funding sources, including individual investors on its Juzi Licai online investment platform, institutional funding partners in its direct lending programs, and investors of its asset-backed securities. The company was formerly known as Staging Finance Holding Ltd. and changed its name to LexinFintech Holdings Ltd. in March 2017. LexinFintech Holdings Ltd. was founded in 2013 and is headquartered in Shenzhen, the People's Republic of China.

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