NerdWallet (NASDAQ:NRDS) & QXO (NASDAQ:QXO) Head-To-Head Analysis

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

Profitability

This table compares NerdWallet and QXO’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NerdWallet	4.42%	-2.08%	-1.73%
QXO	30.08%	1.58%	1.30%

Insider & Institutional Ownership

38.8% of NerdWallet shares are held by institutional investors. Comparatively, 58.7% of QXO shares are held by institutional investors. 45.9% of NerdWallet shares are held by company insiders. Comparatively, 51.3% of QXO shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Volatility and Risk

NerdWallet has a beta of 1.33, suggesting that its stock price is 33% more volatile than the S&P 500. Comparatively, QXO has a beta of 2.27, suggesting that its stock price is 127% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations and price targets for NerdWallet and QXO, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NerdWallet	0	1	4	0	2.80
QXO	0	0	0	0	0.00

NerdWallet currently has a consensus price target of $17.60, suggesting a potential upside of 70.38%. Given NerdWallet’s stronger consensus rating and higher possible upside, equities research analysts clearly believe NerdWallet is more favorable than QXO.

Earnings and Valuation

This table compares NerdWallet and QXO”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NerdWallet	$687.60 million	1.10	-$11.80 million	$0.40	25.83
QXO	$54.52 million	94.21	-$1.07 million	($9.12)	-1.38

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

Summary

QXO beats NerdWallet on 8 of the 14 factors compared between the two stocks.

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.

About QXO

QXO, Inc. operates as a business application, technology, and consulting company in North America. The company provides solutions for accounting and business management, financial reporting, enterprise resource planning, human capital management, warehouse management systems, customer relationship management, and business intelligence. It also offers value-added services that focuses on consulting and professional, specialized programming, training, and technical support services. In addition, the company provides information technology managed services, such as cybersecurity, application hosting, disaster recovery, business continuity, cloud, and other services; and data back-up, network maintenance, and upgrade services. It serves small and medium-sized businesses primarily in the manufacturing, distribution, and service industries. QXO, Inc. is headquartered in Greenwich, Connecticut.