Reviewing NU (NYSE:NU) and Prestige Wealth (NASDAQ:PWM)

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

Analyst Recommendations

This is a summary of recent ratings and target prices for NU and Prestige Wealth, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NU	1	4	5	0	2.40
Prestige Wealth	0	0	0	0	0.00

NU presently has a consensus price target of $15.47, suggesting a potential upside of 31.69%. Given NU’s stronger consensus rating and higher possible upside, research analysts clearly believe NU is more favorable than Prestige Wealth.

Insider and Institutional Ownership

84.0% of NU shares are held by institutional investors. Comparatively, 7.7% of Prestige Wealth shares are held by institutional investors. 1.2% of NU 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
NU	17.12%	30.99%	4.82%
Prestige Wealth	N/A	N/A	N/A

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NU	$8.27 billion	6.77	$1.03 billion	$0.40	29.36
Prestige Wealth	$639,912.00	7.31	-$6.88 million	N/A	N/A

NU has higher revenue and earnings than Prestige Wealth.

Risk and Volatility

NU has a beta of 1.14, meaning that its stock price is 14% more volatile than the S&P 500. Comparatively, Prestige Wealth has a beta of 3.22, meaning that its stock price is 222% more volatile than the S&P 500.

Summary

NU beats Prestige Wealth on 10 of the 12 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 Prestige Wealth

Prestige Wealth Inc., through its subsidiaries, provides wealth management and asset management services. It assists its clients in identifying and purchasing wealth and asset management products. The company offers its services primarily for high net worth and ultra-high net worth individuals, including business owners, executives, heirs of rich families, and other affluent individuals in Asia primarily in the mainland China or Hong Kong. The company was incorporated in 2018 and is based in Central, Hong Kong. Prestige Wealth Inc. is a subsidiary of Prestige Financial Holdings Group Limited.