Head-To-Head Review: Mr. Cooper Group (COOP) and Green Dot (GDOT)

Mr. Cooper Group (NASDAQ:COOP) and Green Dot (NYSE:GDOT) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, valuation, institutional ownership, risk, profitability, analyst recommendations and dividends.

Profitability

This table compares Mr. Cooper Group and Green Dot’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Mr. Cooper Group 47.66% 62.93% 6.98%
Green Dot 10.56% 15.74% 5.76%

Institutional & Insider Ownership

86.3% of Mr. Cooper Group shares are held by institutional investors. Comparatively, 88.0% of Green Dot shares are held by institutional investors. 0.9% of Mr. Cooper Group shares are held by insiders. Comparatively, 7.8% of Green Dot shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Risk & Volatility

Mr. Cooper Group has a beta of 0.4, indicating that its stock price is 60% less volatile than the S&P 500. Comparatively, Green Dot has a beta of 0.74, indicating that its stock price is 26% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and target prices for Mr. Cooper Group and Green Dot, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Mr. Cooper Group 1 1 2 0 2.25
Green Dot 0 5 7 0 2.58

Mr. Cooper Group presently has a consensus target price of $17.50, suggesting a potential upside of 92.31%. Green Dot has a consensus target price of $83.46, suggesting a potential upside of 73.81%. Given Mr. Cooper Group’s higher possible upside, equities research analysts clearly believe Mr. Cooper Group is more favorable than Green Dot.

Earnings & Valuation

This table compares Mr. Cooper Group and Green Dot’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Mr. Cooper Group $1.79 billion 0.46 $1.04 billion N/A N/A
Green Dot $1.04 billion 2.44 $118.70 million $2.53 18.98

Mr. Cooper Group has higher revenue and earnings than Green Dot.

About Mr. Cooper Group

Mr. Cooper Group Inc. provides servicing, origination, and transaction-based services related principally to single-family residences in the United States. The company operates through three segments: Servicing, Originations, and Xome. The Servicing segment performs activities for originated and purchased loans, as well as operates as a subservicer for various clients that own the underlying servicing rights. The Originations segment originates, purchases, and sells mortgage loans. The Xome segment offers technology and data enhanced solutions to home buyers, home sellers, real estate professionals, and companies engaged in the servicing and origination of mortgage loans. The company operates primarily under the Mr. Cooper and Xome brands. The company was formerly known as WMIH Corp. and changed its name to Mr. Cooper Group Inc. in October 2018. Mr. Cooper Group Inc. is headquartered in Coppell, Texas.

About Green Dot

Green Dot Corporation operates as a financial technology and bank holding company in the United States. It operates in two segments, Account Services, and Processing and Settlement Services. The company offers deposit account programs, such network-branded reloadable prepaid debit cards under the consumer brand names of GPR cards, consumer and small business checking accounts, network-branded gift cards, secured credit cards, and other financial services. It also provides swipe reload system for crediting cash onto an enabled payment card by swiping the payment card at the point-of-sale through Green Dot Network participating retailer; MoneyPak, a product that allows a consumer to add funds to accounts; and e-cash remittance, a service that allows a consumer to transfer funds to a smartphone, as well as offers disbursement services through Simply Paid platform. In addition, the company offers prepaid cards, debit cards, payroll debit cards, consumer cash processing services, wage disbursements, and tax refund processing services, as well as issuing, settlement, and capital management services. Further, it provides mobile banking, loan disbursement accounts, mobile P2P, money transfer, instant payment, and processing and settlement services. The company markets its products under the brand names of Green Dot, GoBank, MoneyPak, AccountNow, RushCard, and RapidPay. Green Dot Corporation markets and sells its products and services through retail stores, various direct-to-consumer Websites, corporate distribution partnerships, tax preparation companies and individual tax preparers, and apps, as well as distributes through ‘Banking as a Service' platform. The company was formerly known as Next Estate Communications, Inc. and changed its name to Green Dot Corporation in October 2005. Green Dot Corporation was incorporated in 1999 and is headquartered in Pasadena, California.

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