Head to Head Review: NewtekOne (NASDAQ:NEWT) vs. Fulton Financial (NASDAQ:FULT)

Fulton Financial (NASDAQ:FULT) and NewtekOne (NASDAQ:NEWT) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, institutional ownership, profitability, dividends, risk and analyst recommendations.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Fulton Financial and NewtekOne, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fulton Financial	0	3	0	0	2.00
NewtekOne	0	3	1	0	2.25

Fulton Financial presently has a consensus price target of $14.60, indicating a potential downside of 4.70%. NewtekOne has a consensus price target of $14.50, indicating a potential upside of 19.93%. Given NewtekOne’s stronger consensus rating and higher probable upside, analysts plainly believe NewtekOne is more favorable than Fulton Financial.

Valuation and Earnings

This table compares Fulton Financial and NewtekOne’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fulton Financial	$1.50 billion	1.65	$284.28 million	$1.64	9.34
NewtekOne	$271.46 million	1.10	$42.97 million	$1.62	7.46

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

Dividends

Fulton Financial pays an annual dividend of $0.68 per share and has a dividend yield of 4.4%. NewtekOne pays an annual dividend of $0.76 per share and has a dividend yield of 6.3%. Fulton Financial pays out 41.5% of its earnings in the form of a dividend. NewtekOne pays out 46.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Fulton Financial has raised its dividend for 3 consecutive years.

Institutional & Insider Ownership

72.0% of Fulton Financial shares are held by institutional investors. Comparatively, 38.4% of NewtekOne shares are held by institutional investors. 1.0% of Fulton Financial shares are held by insiders. Comparatively, 6.4% of NewtekOne shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Volatility and Risk

Fulton Financial has a beta of 0.81, meaning that its stock price is 19% less volatile than the S&P 500. Comparatively, NewtekOne has a beta of 1.25, meaning that its stock price is 25% more volatile than the S&P 500.

Profitability

This table compares Fulton Financial and NewtekOne’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fulton Financial	18.94%	12.01%	1.08%
NewtekOne	15.19%	20.71%	3.09%

Summary

Fulton Financial beats NewtekOne on 9 of the 17 factors compared between the two stocks.

About Fulton Financial

Fulton Financial Corporation operates as a financial holding company that provides consumer and commercial banking products and services in Pennsylvania, Delaware, Maryland, New Jersey, and Virginia. It accepts various checking accounts and savings deposit products, certificates of deposit, and individual retirement accounts. The company offers consumer loans products, including home equity loans and lines of credit, automobile loans, personal lines of credit, and checking account overdraft protection; construction and jumbo residential mortgage loans; and commercial lending products comprising commercial real estate, commercial and industrial, and construction loans, as well as equipment lease financing loans. In addition, it offers letters of credit, cash management services, and traditional deposit products; and wealth management services, including investment management, trust, brokerage, insurance, and investment advisory services. Further, the company owns trust preferred securities; and sells various life insurance products. It provides its products and services through financial center offices, as well as through a network of automated teller machines, telephone banking, mobile banking, and online banking. Fulton Financial Corporation was founded in 1882 and is headquartered in Lancaster, Pennsylvania.

About NewtekOne

NewtekOne, Inc., a financial holding company, provides a range of business and financial solutions to the small- and medium-sized business market. Its business and financial solutions include banking services, business lending, electronic payment processing, ecommerce, accounts receivable financing and inventory financing, insurance solutions, web services, and payroll and benefits solutions, as well as technology solutions, including cloud computing, data backup, storage, retrieval, and IT consulting. The company was founded in 1998 and is based in Boca Raton, Florida.