Chime Financial (NASDAQ:CHYM – Get Free Report) and Neostellar Capital (NASDAQ:NSLR – Get Free Report) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, valuation, earnings, profitability, institutional ownership, risk and dividends.
Analyst Recommendations
This is a summary of recent recommendations and price targets for Chime Financial and Neostellar Capital, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Chime Financial | 0 | 3 | 17 | 3 | 3.00 |
| Neostellar Capital | 0 | 1 | 4 | 1 | 3.00 |
Chime Financial presently has a consensus target price of $39.47, suggesting a potential upside of 21.31%. Neostellar Capital has a consensus target price of $12.75, suggesting a potential upside of 113.21%. Given Neostellar Capital’s higher possible upside, analysts plainly believe Neostellar Capital is more favorable than Chime Financial.
Institutional & Insider Ownership
13.0% of Neostellar Capital shares are owned by institutional investors. 12.3% of Chime Financial shares are owned by insiders. Comparatively, 8.3% of Neostellar Capital 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.
Profitability
This table compares Chime Financial and Neostellar Capital’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Chime Financial | 3.05% | 6.72% | 4.80% |
| Neostellar Capital | 5,128.31% | -11.78% | -9.57% |
Volatility & Risk
Chime Financial has a beta of 0.74, indicating that its share price is 26% less volatile than the S&P 500. Comparatively, Neostellar Capital has a beta of 1.49, indicating that its share price is 49% more volatile than the S&P 500.
Earnings and Valuation
This table compares Chime Financial and Neostellar Capital”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Chime Financial | $2.19 billion | 5.63 | -$1.01 billion | $0.19 | 171.26 |
| Neostellar Capital | $1.69 million | 93.66 | $48.81 million | $2.95 | 2.03 |
Neostellar Capital has lower revenue, but higher earnings than Chime Financial. Neostellar Capital is trading at a lower price-to-earnings ratio than Chime Financial, indicating that it is currently the more affordable of the two stocks.
Summary
Neostellar Capital beats Chime Financial on 7 of the 13 factors compared between the two stocks.
About Chime Financial
Chime Financial operates a digital financial services platform for consumers in the United States. Through its mobile app, the company offers spending and savings accounts, debit cards and tools for managing money. Its products also include credit-building services and features designed to help customers access direct deposits and avoid certain common banking fees. Founded in 2012 by Chris Britt and Ryan King, Chime is a financial technology company, not a bank. Banking services are provided through partner banks, including The Bancorp Bank, N.A., and Stride Bank, N.A. Chris Britt has served as the company’s chief executive officer.
About Neostellar Capital
SuRo Capital Corp. is a business development company. The firm seeks to invest in growing, late stage, venture capital-backed private companies. SuRo Capital Corp. was founded in 2010 and is based in San Francisco, California.
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