Chime Financial (NASDAQ:CHYM) and Shift4 Payments (NYSE:FOUR) Head to Head Comparison

Shift4 Payments (NYSE:FOUR) and Chime Financial (NASDAQ:CHYM) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, dividends, profitability and risk.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Shift4 Payments and Chime Financial, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Shift4 Payments	1	11	11	0	2.43
Chime Financial	1	3	16	4	2.96

Shift4 Payments currently has a consensus target price of $60.24, suggesting a potential upside of 46.52%. Chime Financial has a consensus target price of $35.00, suggesting a potential upside of 1.30%. Given Shift4 Payments’ higher possible upside, equities analysts plainly believe Shift4 Payments is more favorable than Chime Financial.

Insider and Institutional Ownership

98.9% of Shift4 Payments shares are owned by institutional investors. 1.5% of Shift4 Payments shares are owned by insiders. Comparatively, 12.3% of Chime Financial shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility and Risk

Shift4 Payments has a beta of 1.38, suggesting that its share price is 38% more volatile than the S&P 500. Comparatively, Chime Financial has a beta of 0.6, suggesting that its share price is 40% less volatile than the S&P 500.

Valuation and Earnings

This table compares Shift4 Payments and Chime Financial”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Shift4 Payments	$4.18 billion	0.78	$119.00 million	$0.60	68.52
Chime Financial	$2.19 billion	5.98	-$1.01 billion	($0.07)	-493.57

Shift4 Payments has higher revenue and earnings than Chime Financial. Chime Financial is trading at a lower price-to-earnings ratio than Shift4 Payments, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Shift4 Payments and Chime Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Shift4 Payments	2.20%	28.40%	4.61%
Chime Financial	-0.74%	-1.28%	-0.92%

Summary

Shift4 Payments beats Chime Financial on 10 of the 15 factors compared between the two stocks.

About Shift4 Payments

Shift4 Payments, Inc. (NYSE FOUR) provides integrated payment processing and technology solutions in the United States. Its payments platform provides omni-channel card acceptance and processing solutions, including end-to-end payment processing for various payment types; merchant acquiring; proprietary omni-channel gateway; complementary software integrations; integrated and mobile point-of-sale (POS) solutions; security and risk management solutions; and reporting and analytical tools, as well as tokenization, risk management/underwriting, payment device and chargeback management, fraud prevention, and gift card solutions. The company also offers suite of technology solutions, such as Lighthouse, a cloud-based business intelligence tool that includes customer engagement, social media management, online reputation management, scheduling, and product pricing, as well as reporting and analytics; integrated POS for merchants business; and Skytab, a mobile payment solution. In addition, it provides marketplace technology that enable seamless integrations into third-party applications, which includes online delivery services, payroll, timekeeping, and other human resource services. Further, the company offers merchant management, training and education, marketing management, and incentives tracking solutions. Additionally, it provides merchant underwriting, onboarding and activation, training, risk management, and support services; and software integrations and compliance management, and partner support and services. The company was founded in 1998 and is headquartered in Allentown, Pennsylvania.

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.