Chime Financial (NASDAQ:CHYM – Get Free Report) and FG Nexus (NASDAQ:FGNX – Get Free Report) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, profitability, institutional ownership, valuation, dividends, analyst recommendations and risk.
Institutional and Insider Ownership
3.1% of FG Nexus shares are owned by institutional investors. 12.3% of Chime Financial shares are owned by insiders. Comparatively, 4.1% of FG Nexus shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Profitability
This table compares Chime Financial and FG Nexus’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Chime Financial | -0.74% | -1.28% | -0.92% |
| FG Nexus | -4,888.86% | -95.68% | -75.45% |
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Chime Financial | $2.46 billion | 4.36 | -$1.01 billion | ($0.07) | -404.14 |
| FG Nexus | $2.44 million | 15.04 | -$66.74 million | ($6.98) | -1.12 |
FG Nexus has lower revenue, but higher earnings than Chime Financial. Chime Financial is trading at a lower price-to-earnings ratio than FG Nexus, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of recent ratings for Chime Financial and FG Nexus, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Chime Financial | 1 | 2 | 16 | 3 | 2.95 |
| FG Nexus | 1 | 1 | 2 | 0 | 2.25 |
Chime Financial currently has a consensus target price of $36.53, indicating a potential upside of 29.11%. FG Nexus has a consensus target price of $35.00, indicating a potential upside of 348.72%. Given FG Nexus’ higher probable upside, analysts plainly believe FG Nexus is more favorable than Chime Financial.
Risk & Volatility
Chime Financial has a beta of 0.83, suggesting that its share price is 17% less volatile than the S&P 500. Comparatively, FG Nexus has a beta of 1.09, suggesting that its share price is 9% more volatile than the S&P 500.
Summary
Chime Financial beats FG Nexus on 9 of the 15 factors compared between the two stocks.
About Chime Financial
Chime is a financial technology company that partners with federally regulated, FDIC-insured banks—The Bancorp Bank, N.A. and Stride Bank, N.A., Members FDIC—to provide consumer banking products and services. The company’s model is designed to eliminate common fees and simplify access to basic financial services.
Chime does not charge overdraft fees, monthly service fees, or require minimum balances. All account balances are held at partner banks and protected by applicable regulatory safeguards to ensure funds remain secure and accessible.
About FG Nexus
FG Financial Group, Inc. operates as a reinsurance and investment management holding company in the United States. The company offers specialty property and casualty reinsurance products and services. It also operates a special purpose acquisition company platform (SPAC) that provides various strategic, administrative, and regulatory support services to newly formed SPACs for a monthly fee. The company was formerly known as 1347 Property Insurance Holdings, Inc. and changed its name to FG Financial Group, Inc. in December 2020. The company was incorporated in 2012 and is based in St. Petersburg, Florida.
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