Head to Head Analysis: NU (NU) vs. Its Peers

NU (NYSE:NU – Get Rating) is one of 72 publicly-traded companies in the “Nondepository credit institutions” industry, but how does it contrast to its competitors? We will compare NU to related companies based on the strength of its analyst recommendations, profitability, risk, institutional ownership, valuation, earnings and dividends.

Risk & Volatility

NU has a beta of 1.06, indicating that its share price is 6% more volatile than the S&P 500. Comparatively, NU’s competitors have a beta of 6.16, indicating that their average share price is 516% more volatile than the S&P 500.

Valuation and Earnings

This table compares NU and its competitors top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
NU	$4.79 billion	-$364.58 million	-56.13
NU Competitors	$3.79 billion	$634.77 million	-2.56

NU has higher revenue, but lower earnings than its competitors. NU is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares NU and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NU	-7.61%	2.13%	0.38%
NU Competitors	-47.31%	3.28%	-0.57%

Institutional & Insider Ownership

47.6% of NU shares are owned by institutional investors. Comparatively, 35.8% of shares of all “Nondepository credit institutions” companies are owned by institutional investors. 1.2% of NU shares are owned by company insiders. Comparatively, 21.3% of shares of all “Nondepository credit institutions” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for NU and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NU	0	1	6	0	2.86
NU Competitors	273	1225	1815	67	2.50

NU currently has a consensus price target of $7.83, suggesting a potential upside of 74.46%. As a group, “Nondepository credit institutions” companies have a potential upside of 41.17%. Given NU’s stronger consensus rating and higher possible upside, research analysts clearly believe NU is more favorable than its competitors.

Summary

NU beats its competitors on 7 of the 13 factors compared.

About NU

(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.