Head-To-Head Comparison: NU (NYSE:NU) versus LM Funding America (NASDAQ:LMFA)

NU (NYSE:NUGet Rating) and LM Funding America (NASDAQ:LMFAGet Rating) are both business services companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, dividends, institutional ownership, profitability, valuation, analyst recommendations and risk.

Insider and Institutional Ownership

70.7% of NU shares are owned by institutional investors. Comparatively, 6.3% of LM Funding America shares are owned by institutional investors. 1.2% of NU shares are owned by insiders. Comparatively, 0.4% of LM Funding America shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and target prices for NU and LM Funding America, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NU 2 4 9 0 2.47
LM Funding America 0 0 1 0 3.00

NU presently has a consensus price target of $10.73, indicating a potential upside of 224.27%. LM Funding America has a consensus price target of $4.00, indicating a potential upside of 406.27%. Given LM Funding America’s stronger consensus rating and higher probable upside, analysts plainly believe LM Funding America is more favorable than NU.

Profitability

This table compares NU and LM Funding America’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
NU N/A N/A N/A
LM Funding America -497.21% -31.52% -30.91%

Valuation and Earnings

This table compares NU and LM Funding America’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
NU $1.70 billion 8.99 -$164.99 million N/A N/A
LM Funding America $900,000.00 11.49 $4.76 million N/A N/A

LM Funding America has lower revenue, but higher earnings than NU.

Summary

NU beats LM Funding America on 7 of the 11 factors compared between the two stocks.

NU Company Profile (Get Rating)

Nu Holdings Ltd. operates as a digital financial services platform and technology company primarily in Brazil, Mexico, and Colombia. 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 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.

LM Funding America Company Profile (Get Rating)

LM Funding America, Inc. operates as a specialty finance company. It provides funding to nonprofit community associations (Associations) primarily located in the state of Florida, as well as in the states of Washington, Colorado, and Illinois. The company offers funding to Associations by purchasing their rights under delinquent accounts that are selected by the Associations arising from unpaid Association assessments. It is also involved in the business of purchasing delinquent accounts on various terms tailored to suit each Association's financial needs, including under its New Neighbor Guaranty program. LM Funding America, Inc. was founded in 2008 and is based in Tampa, Florida.

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