EFactor Group (EFCT) versus NEWTEK Business Services (NEWT) Head to Head Review
EFactor Group (OTCMKTS:EFCT) and NEWTEK Business Services (NASDAQ:NEWT) are both computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, risk, institutional ownership, earnings, valuation and profitability.
Insider and Institutional Ownership
21.2% of NEWTEK Business Services shares are owned by institutional investors. 17.5% of EFactor Group shares are owned by insiders. Comparatively, 6.3% of NEWTEK Business Services shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
This is a summary of recent recommendations for EFactor Group and NEWTEK Business Services, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|NEWTEK Business Services||0||3||0||0||2.00|
NEWTEK Business Services has a consensus target price of $19.00, suggesting a potential downside of 7.14%. Given NEWTEK Business Services’ higher probable upside, analysts plainly believe NEWTEK Business Services is more favorable than EFactor Group.
NEWTEK Business Services pays an annual dividend of $1.92 per share and has a dividend yield of 9.4%. EFactor Group does not pay a dividend. NEWTEK Business Services pays out 108.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. NEWTEK Business Services has increased its dividend for 2 consecutive years.
Earnings & Valuation
This table compares EFactor Group and NEWTEK Business Services’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|NEWTEK Business Services||$38.91 million||9.94||$38.97 million||$1.77||11.56|
NEWTEK Business Services has higher revenue and earnings than EFactor Group.
This table compares EFactor Group and NEWTEK Business Services’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|NEWTEK Business Services||102.01%||8.51%||4.24%|
NEWTEK Business Services beats EFactor Group on 8 of the 10 factors compared between the two stocks.
About EFactor Group
EFactor Group Corp. is a global company that combines an online and in-person social network with business services and funding focused on the entrepreneurial community. The Company’s divisions include Social Networks, Business Services, and Funding. Social Networks division offers social networking tools to members, hosting live networking events, connecting business owners, providing direct member benefits and aggregating customer loyalty programs. The Business Services division offers critical services to entrepreneurs to build their businesses, including brand marketing, staffing, graphic design, public relations and other third-party business resources. The Funding division enables entrepreneurs and small businesses to raise money from donations and pre-orders by the general public through its subsidiary, RocketHub Inc., a donation-based crowdfunding platform.
About NEWTEK Business Services
Newtek Business Services Corp. is a business development company specializing in providing financial and business services to the small-and medium-sized business market in the United States. The firm also seeks to invest in early stage businesses. The firm seeks to makes both debt and equity investments. Under debt investments, it focuses on first lien loans, which have terms of 1 to 25 years; second lien loans, which have terms of 5 to 25 years, and unsecured loans, which are provided to meet short-term funding needs and are repaid within 6 to 12 months. It operates through Electronic Payment Processing, Managed Technology Solutions, Small Business Finance, and Capcos segments. The company originates small business administration loans for the purpose of acquiring commercial real estate, machinery, equipment, and inventory, as well as to refinance debt and fund franchises, working capital, and business acquisitions; and offers small business loan servicing and consulting services to the Federal Deposit Insurance Corporation and various other financial institutions, as well as provides management services. Its electronic payment processing services include credit and debit card processing, check approval, ancillary processing equipment and software to merchants, eCommerce, electronic solutions to accept non-cash payments, check conversion, remote deposit capture, ACH processing, and electronic gift and loyalty card programs. The company also provides Website hosting, dedicated server, and cloud hosting services; Web design and development; Internet marketing; data storage and backup and other related services; and ecommerce services, such as payment processing, online shopping cart tools, Website design and Web related services; Accounts Receivable Financing, and The Secure Gateway. In addition, it offers Newtek Advantage, a mobile, real-time operating platform enabling a business to access data on a smartphone, tablet, laptop, or PC for eCommerce, credit/debit transactions, Website statistics, payroll, insurance, and business loans. Further, the company sells personal, commercial, and health/benefits lines of insurance products; and payroll management processing and employee tax filing services. It has strategic alliances with American International Group, CTAA, Navy Federal Credit Union, Credit Union National Association, Pershing, and others to provide agent services to small business clients. The firm seeks to invest in New York and Louisiana area. The firm seeks to invest $0.3 million to $3 million in businesses. It provides small business terms loans ranging from $0.05 million to $10 million. The firm also provides account receivable financing ranging from $0.05 million to $1.5 million. It also provides $0.05 million to $10 million financing to owner occupied real estate businesses whose average net income over the last 2 years must not exceed $2.5 million. Newtek Business Services Corp., formerly known as Newtek Business Services Inc., was incorporated on August 26, 2013 and is headquartered in Lake Success, New York with additional offices in Garden City, New York; Miami, Florida; Milwaukee, Wisconsin; New Orleans, Louisiana; and New York, New York.
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