Axos Financial (NYSE:AX – Get Free Report) and Sparta Commercial Services (OTCMKTS:SRCO – Get Free Report) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, dividends, profitability, risk, earnings, analyst recommendations and institutional ownership.
Profitability
This table compares Axos Financial and Sparta Commercial Services’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Axos Financial | 22.53% | 16.48% | 1.72% |
| Sparta Commercial Services | -490.70% | N/A | -204.88% |
Analyst Recommendations
This is a breakdown of current recommendations and price targets for Axos Financial and Sparta Commercial Services, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Axos Financial | 0 | 2 | 4 | 1 | 2.86 |
| Sparta Commercial Services | 0 | 0 | 0 | 0 | 0.00 |
Institutional and Insider Ownership
83.8% of Axos Financial shares are held by institutional investors. 4.9% of Axos Financial shares are held by company insiders. Comparatively, 0.5% of Sparta Commercial Services shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Earnings and Valuation
This table compares Axos Financial and Sparta Commercial Services”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Axos Financial | $1.95 billion | 2.50 | $432.91 million | $8.23 | 10.42 |
| Sparta Commercial Services | $240,000.00 | 15.86 | -$2.12 million | ($0.04) | -1.78 |
Axos Financial has higher revenue and earnings than Sparta Commercial Services. Sparta Commercial Services is trading at a lower price-to-earnings ratio than Axos Financial, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Axos Financial has a beta of 1.3, suggesting that its stock price is 30% more volatile than the S&P 500. Comparatively, Sparta Commercial Services has a beta of 0.06, suggesting that its stock price is 94% less volatile than the S&P 500.
Summary
Axos Financial beats Sparta Commercial Services on 14 of the 15 factors compared between the two stocks.
About Axos Financial
Axos Financial, Inc., together with its subsidiaries, provides consumer and business banking products in the United States. It operates through two segments, Banking Business and Securities Business. The company offers deposits products, including consumer and business checking, demand, savings, time deposit, money market, zero balance, and insured cash sweep accounts. It also provides residential single family, multifamily, and commercial mortgage loans; commercial real estate secured loans; commercial and industrial non-real estate, asset-backed, lines of credit, and term loans; automobile loans; fixed rate unsecured loans; and other loans, such as structure settlements, small business administration consumer loans, and securities-backed loans. In addition, the company offers ACH origination, wire transfer, commercial check printing, business bill pay and account transfer; remote deposit capture, mobile deposit, lockbox, merchant, and online payment portal; concierge banking; mobile and text message banking; and payment services, as well as debit and credit cards, and digital wallets. Further, it provides disclosed clearing services; back-office services, such as record keeping, trade reporting, accounting, general back-office support, securities and margin lending, reorganization assistance, and custody of securities; and financing to brokerage customers. The company was formerly known as BofI Holding, Inc. and changed its name to Axos Financial, Inc. in September 2018. Axos Financial, Inc. was incorporated in 1999 and is based in Las Vegas, Nevada.
About Sparta Commercial Services
Sparta Commercial Services, Inc. develops, markets, and manages business websites and mobile applications for smartphones and tablets under the iMobileApp name. It offers mobile applications for vehicle dealerships, racetracks, private clubs, country clubs, schools and entertainment venues, restaurants, grocery stores, and various other merchant types. The company also owns and manages websites, which sell motorcycle, recreational vehicle, and truck title history reports for consumers, retailers, municipals, nonprofits, auction houses, banks, and insurance companies; and designs, launches, maintains, and hosts websites for businesses, as well as provides text messaging services. In addition, it offers eCommerce, customer relationship management development and integration, search engine optimization, social media marketing, and online reviews website services to its clients. Further, the company provides an equipment-leasing product for local and state agencies that helps to finance their essential equipment needs, including police motorcycles, cruisers, buses, fire trucks, and EMS equipment; and a range of hemp-derived cannabinol products through newworldhealthcbd.com. The company was incorporated in 1980 and is headquartered in New York, New York.
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