NU (NYSE:NU) & Bitcoin Depot (NASDAQ:BTM) Critical Analysis

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

Earnings and Valuation

This table compares Bitcoin Depot and NU”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bitcoin Depot	$585.28 million	0.17	-$26.10 million	($0.93)	-1.76
NU	$8.03 billion	6.69	$1.03 billion	$0.36	31.29

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

Insider & Institutional Ownership

9.2% of Bitcoin Depot shares are held by institutional investors. Comparatively, 84.0% of NU shares are held by institutional investors. 70.2% of Bitcoin Depot shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Bitcoin Depot and NU, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bitcoin Depot	0	0	2	1	3.33
NU	1	4	5	0	2.40

Bitcoin Depot currently has a consensus price target of $3.75, indicating a potential upside of 128.66%. NU has a consensus price target of $15.63, indicating a potential upside of 38.78%. Given Bitcoin Depot’s stronger consensus rating and higher probable upside, research analysts clearly believe Bitcoin Depot is more favorable than NU.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Bitcoin Depot	-2.28%	-488.33%	-15.15%
NU	16.28%	28.70%	4.41%

Summary

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

About Bitcoin Depot

Bitcoin Depot Inc. owns and operates a network of cryptocurrency kiosks in North America. Its customers can buy and sell bitcoin, litecoin, and ethereum cryptocurrencies using the BTM kiosk network and other services. The company also engages in the sale of cryptocurrency to consumers at a network of retail locations through its BDCheckout product offering, as well as its website through over-the-counter trade. The company is headquartered in Atlanta, Georgia. Bitcoin Depot Inc. is a subsidiary of BT Assets, Inc.

About NU

Nu Holdings Ltd. provides digital banking platform and digital financial services in Brazil, Mexico, Colombia, and internationally. It offers Nu credit and debit cards; Ultraviolet credit and debit cards; and mobile payment solutions for NuAccount customers to make and receive transfers, pay bills, and make everyday purchases through their mobile phones. The company provides savings solutions, such as Nu Personal Accounts, a digital account solution that supports all personal finance activities, from daily purchases and money transfers to savings; and Nu business accounts designed specifically for entrepreneur customers and their businesses. In addition, it offers NuCrypto, a solution for buying and selling cryptocurrencies through the Nu app; NuInvest, an investment product that provides equity, fixed-income, options, and ETF products, as well as multimarket funds with curated asset allocations based on the customer's risk profile and financial position; personal unsecured loans; in-app buy now pay later' solution for Nu card customers to pay credit and debit purchases, and banking payment slips over time in up to twelve installments; and NuInsurance protecting solutions to help its customers secure life insurance and funeral benefits. The company was founded in 2013 and is headquartered in Sao Paulo, Brazil.