Coupon Express (OTCMKTS:CPXP) and NEWTEK Business Services (NASDAQ:NEWT) are both business services companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, analyst recommendations, dividends, institutional ownership, earnings, risk and valuation.
This table compares Coupon Express and NEWTEK Business Services’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|NEWTEK Business Services||61.37%||14.42%||6.11%|
Insider and Institutional Ownership
17.1% of NEWTEK Business Services shares are owned by institutional investors. 1.8% of Coupon Express shares are owned by insiders. Comparatively, 6.7% of NEWTEK Business Services shares are owned by 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.
NEWTEK Business Services pays an annual dividend of $2.32 per share and has a dividend yield of 9.9%. Coupon Express does not pay a dividend. NEWTEK Business Services pays out 119.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Valuation & Earnings
This table compares Coupon Express and NEWTEK Business Services’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|NEWTEK Business Services||$49.51 million||9.35||$35.68 million||$1.94||12.04|
NEWTEK Business Services has higher revenue and earnings than Coupon Express.
This is a breakdown of current ratings for Coupon Express and NEWTEK Business Services, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|NEWTEK Business Services||0||2||1||0||2.33|
NEWTEK Business Services has a consensus target price of $17.89, indicating a potential downside of 23.40%.
NEWTEK Business Services beats Coupon Express on 8 of the 9 factors compared between the two stocks.
Coupon Express Company Profile
Coupon Express, Inc., a digital signage company, engages in the placement and management of coupon kiosks in the United States. It provides interactive customer communications systems and applications supporting targeted marketing programs with point-of-purchase services; and information for shoppers and distributors. The company offers in-store customized couponing in various languages for impact in regional independent retailers in the grocery and convenience store industries, enabling retailers to determine price-points for new products and mitigate losses from hard-to-sell items through its proprietary kiosks and services. Coupon Express, Inc., through a joint marketing agreement with Midax, Inc., provides transactions for issuing, redeeming, and reporting coupons, as well as creating loyalty programs and shopping list services. The company was formerly known as PSI Corporation and changed its name to Coupon Express, Inc. in October 2011. Coupon Express, Inc. is headquartered in New York, New York.
NEWTEK Business Services Company Profile
Newtek Business Services Corp. is a business development company specializing in providing financial and business services to the small-and medium-sized business market in the United States. The firm also seeks to invest in early stage businesses. The firm seeks to makes both debt and equity investments. Under debt investments, it focuses on first lien loans, which have terms of 1 to 25 years; second lien loans, which have terms of 5 to 25 years, and unsecured loans, which are provided to meet short-term funding needs and are repaid within 6 to 12 months. It operates through Electronic Payment Processing, Managed Technology Solutions, Small Business Finance, and Capcos segments. The company originates small business administration loans for the purpose of acquiring commercial real estate, machinery, equipment, and inventory, as well as to refinance debt and fund franchises, working capital, and business acquisitions; and offers small business loan servicing and consulting services to the Federal Deposit Insurance Corporation and various other financial institutions, as well as provides management services. Its electronic payment processing services include credit and debit card processing, check approval, ancillary processing equipment and software to merchants, eCommerce, electronic solutions to accept non-cash payments, check conversion, remote deposit capture, ACH processing, and electronic gift and loyalty card programs. The company also provides Website hosting, dedicated server, and cloud hosting services; Web design and development; Internet marketing; data storage and backup and other related services; and ecommerce services, such as payment processing, online shopping cart tools, Website design and Web related services; Accounts Receivable Financing, and The Secure Gateway. In addition, it offers Newtek Advantage, a mobile, real-time operating platform enabling a business to access data on a smartphone, tablet, laptop, or PC for eCommerce, credit/debit transactions, Website statistics, payroll, insurance, and business loans. Further, the company sells personal, commercial, and health/benefits lines of insurance products; and payroll management processing and employee tax filing services. It has strategic alliances with American International Group, CTAA, Navy Federal Credit Union, Credit Union National Association, Pershing, and others to provide agent services to small business clients. The firm seeks to invest in New York and Louisiana area. The firm seeks to invest $0.3 million to $3 million in businesses. It provides small business terms loans ranging from $0.05 million to $10 million. The firm also provides account receivable financing ranging from $0.05 million to $1.5 million. It also provides $0.05 million to $10 million financing to owner occupied real estate businesses whose average net income over the last 2 years must not exceed $2.5 million. Newtek Business Services Corp., formerly known as Newtek Business Services Inc., was incorporated on August 26, 2013 and is headquartered in Lake Success, New York with additional offices in Garden City, New York; Miami, Florida; Milwaukee, Wisconsin; New Orleans, Louisiana; and New York, New York.
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