Head to Head Contrast: NewtekOne (NASDAQ:NEWT) & Argo Blockchain (NASDAQ:ARBK)

Argo Blockchain (NASDAQ:ARBK) and NewtekOne (NASDAQ:NEWT) are both small-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, earnings, valuation, analyst recommendations, institutional ownership, profitability and dividends.

Analyst Ratings

This is a summary of current recommendations and price targets for Argo Blockchain and NewtekOne, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Argo Blockchain	1	1	0	0	1.50
NewtekOne	0	3	0	1	2.50

NewtekOne has a consensus target price of $15.33, indicating a potential upside of 36.54%. Given NewtekOne’s stronger consensus rating and higher probable upside, analysts clearly believe NewtekOne is more favorable than Argo Blockchain.

Institutional & Insider Ownership

2.4% of Argo Blockchain shares are owned by institutional investors. Comparatively, 38.3% of NewtekOne shares are owned by institutional investors. 6.7% of NewtekOne shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Argo Blockchain and NewtekOne”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Argo Blockchain	$47.02 million	0.02	-$55.10 million	($210.87)	-0.01
NewtekOne	$266.99 million	1.21	$60.51 million	$2.19	5.13

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

Profitability

This table compares Argo Blockchain and NewtekOne’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Argo Blockchain	N/A	N/A	N/A
NewtekOne	15.51%	18.83%	2.53%

Volatility and Risk

Argo Blockchain has a beta of 1.97, suggesting that its share price is 97% more volatile than the S&P 500. Comparatively, NewtekOne has a beta of 1.25, suggesting that its share price is 25% more volatile than the S&P 500.

Summary

NewtekOne beats Argo Blockchain on 13 of the 14 factors compared between the two stocks.

About Argo Blockchain

Argo Blockchain plc, together with its subsidiaries, engages in the bitcoin and other cryptocurrencies mining business worldwide. It engages in mining purpose-built computers for complex cryptographic algorithms. The company was formerly known as GoSun Blockchain Limited and changed its name to Argo Blockchain plc in December 2017. Argo Blockchain plc was incorporated in 2017 and is based in London, the United Kingdom.

About NewtekOne

NewtekOne, Inc. operates as the bank holding company for Newtek Bank, National Association that engages in the provision of various business and financial solutions under the Newtek brand name to the small- and medium-sized business market. The company accepts demand, savings, NOW, money market, and time deposits; and provides loans including SBA loans, commercial and industrial loans, and commercial real estate loans. It is also involved in the provision of electronic payment processing services comprising credit and debit card processing services, check approval services, processing equipment, and software, as well as cloud-based Point of Sale systems for a various restaurant, retail, assisted living, taxi cabs, parks, and golf course businesses. In addition, it offers wholesale brokerage insurance agency services; and payroll management, and related payment and tax reporting services to independent business owners. Further, the company provides website hosting, dedicated server hosting, cloud hosting, web design and development, internet marketing, ecommerce, data storage, backup and disaster recovery, and other related services, including consulting and implementing technology solutions for enterprise and commercial clients as well as SMBs. The company was formerly known as Newtek Business Services Corp. and changed its name to NewtekOne, Inc. in January 2023. NewtekOne, Inc. was founded in 1998 and is headquartered in Boca Raton, Florida.