Financial Review: NU (NYSE:NU) vs. QCR (NASDAQ:QCRH)

NU (NYSE:NU) and QCR (NASDAQ:QCRH) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, risk, dividends, earnings, institutional ownership, analyst recommendations and valuation.

Earnings and Valuation

This table compares NU and QCR”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NU	$15.77 billion	4.62	$2.87 billion	$0.74	20.30
QCR	$603.75 million	2.77	$127.19 million	$8.46	12.05

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

Volatility & Risk

NU has a beta of 0.94, indicating that its stock price is 6% less volatile than the S&P 500. Comparatively, QCR has a beta of 0.73, indicating that its stock price is 27% less volatile than the S&P 500.

Profitability

This table compares NU and QCR’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NU	18.65%	31.59%	4.97%
QCR	22.86%	12.87%	1.50%

Insider & Institutional Ownership

84.0% of NU shares are held by institutional investors. Comparatively, 70.0% of QCR shares are held by institutional investors. 1.2% of NU shares are held by insiders. Comparatively, 3.2% of QCR shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current recommendations and price targets for NU and QCR, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NU	1	4	9	0	2.57
QCR	0	2	4	0	2.67

NU currently has a consensus target price of $17.91, suggesting a potential upside of 19.22%. QCR has a consensus target price of $108.75, suggesting a potential upside of 6.69%. Given NU’s higher possible upside, research analysts plainly believe NU is more favorable than QCR.

Summary

NU beats QCR on 10 of the 14 factors compared between the two stocks.

About NU

Nu Holdings Ltd. is a holding company, which engages in the provision of digital banking services. The company was founded by David Vélez Osorno, Cristina Helena Zingaretti Junqueira, and Adam Edward Wible on February 26, 2016 and is headquartered in George Town, Cayman Islands.

About QCR

QCR Holdings, Inc., a multi-bank holding company, provides commercial and consumer banking, and trust and asset management services. The company’s deposit products include noninterest-bearing demand, interest-bearing demand, time, and brokered deposits. It also provides various commercial and retail lending/leasing, and investment services to corporations, partnerships, individuals, and government agencies. The company’s loan portfolio comprises loans to small and mid-sized businesses; business loans, including lines of credit for working capital and operational purposes; term loans for the acquisition of facilities, equipment, and other purposes; commercial and residential real estate loans; and installment and other consumer loans, such as home improvement, home equity, motor vehicle, and signature loans, as well as small personal credit lines. In addition, it engages in leasing of machinery and equipment to commercial and industrial businesses under direct financing lease contracts; and issuance of trust preferred securities. QCR Holdings, Inc. was incorporated in 1993 and is headquartered in Moline, Illinois.