MoneyHero (NASDAQ:MNY – Get Free Report) and NerdWallet (NASDAQ:NRDS – Get Free Report) are both small-cap communication services companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, valuation, analyst recommendations, risk, earnings, dividends and institutional ownership.
Risk & Volatility
MoneyHero has a beta of 1.28, meaning that its share price is 28% more volatile than the S&P 500. Comparatively, NerdWallet has a beta of 1.25, meaning that its share price is 25% more volatile than the S&P 500.
Insider and Institutional Ownership
30.9% of MoneyHero shares are held by institutional investors. Comparatively, 38.8% of NerdWallet shares are held by institutional investors. 19.2% of MoneyHero shares are held by company insiders. Comparatively, 52.7% of NerdWallet shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| MoneyHero | 1 | 1 | 0 | 0 | 1.50 |
| NerdWallet | 1 | 3 | 4 | 0 | 2.38 |
NerdWallet has a consensus target price of $12.83, suggesting a potential upside of 44.93%. Given NerdWallet’s stronger consensus rating and higher probable upside, analysts plainly believe NerdWallet is more favorable than MoneyHero.
Profitability
This table compares MoneyHero and NerdWallet’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| MoneyHero | -14.85% | -21.04% | -10.59% |
| NerdWallet | 7.56% | 18.07% | 14.41% |
Earnings and Valuation
This table compares MoneyHero and NerdWallet”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| MoneyHero | $73.36 million | 0.40 | -$5.18 million | ($0.33) | -2.02 |
| NerdWallet | $836.60 million | 0.68 | $48.70 million | $0.89 | 9.95 |
NerdWallet has higher revenue and earnings than MoneyHero. MoneyHero is trading at a lower price-to-earnings ratio than NerdWallet, indicating that it is currently the more affordable of the two stocks.
Summary
NerdWallet beats MoneyHero on 13 of the 14 factors compared between the two stocks.
About MoneyHero
MoneyHero Limited operates as a personal finance company. It engages in operation of online financial comparison platforms and related services. The company offers its products under Money Hero, SingSaver, Money101, MoneyMax, CompareHero, Seedly, and Creatory brands. MoneyHero Limited operates in Singapore, Hong Kong, Taiwan, the Philippines, Malaysia, and Thailand. The company was founded in 2014 and is headquartered in Singapore.
About NerdWallet
NerdWallet, Inc. operates a digital platform that provides consumer-driven advice about personal finance by connecting individuals and small and mid-sized businesses with financial products providers in the United States, the United Kingdom, Australia, and Canada. Its platform offers guidance to consumers through educational content, tools and calculators, and product marketplaces, as well as through NerdWallet app for various financial products, including credit cards, mortgages, insurance, SMB products, personal loans, banking, investing, and student loans. The company was founded in 2009 and is based in San Francisco, California.
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