Analyzing Prestige Wealth (NASDAQ:PWM) and NU (NYSE:NU)

Prestige Wealth (NASDAQ:PWM) and NU (NYSE:NU) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, profitability, valuation, dividends and risk.

Earnings & Valuation

This table compares Prestige Wealth and NU”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Prestige Wealth	$639,912.00	7.18	-$6.88 million	N/A	N/A
NU	$8.27 billion	6.18	$1.03 billion	$0.40	26.82

NU has higher revenue and earnings than Prestige Wealth.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Prestige Wealth and NU, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Prestige Wealth	0	0	0	0	0.00
NU	1	4	5	0	2.40

NU has a consensus target price of $15.47, indicating a potential upside of 44.17%. Given NU’s stronger consensus rating and higher probable upside, analysts plainly believe NU is more favorable than Prestige Wealth.

Volatility & Risk

Prestige Wealth has a beta of 3.22, suggesting that its share price is 222% more volatile than the S&P 500. Comparatively, NU has a beta of 1.14, suggesting that its share price is 14% more volatile than the S&P 500.

Profitability

This table compares Prestige Wealth and NU’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Prestige Wealth	N/A	N/A	N/A
NU	17.12%	30.99%	4.82%

Insider and Institutional Ownership

7.7% of Prestige Wealth shares are held by institutional investors. Comparatively, 84.0% of NU shares are held by institutional investors. 1.2% of NU shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

NU beats Prestige Wealth on 10 of the 12 factors compared between the two stocks.

About Prestige Wealth

Prestige Wealth Inc., through its subsidiaries, provides wealth management and asset management services. It assists its clients in identifying and purchasing wealth and asset management products. The company offers its services primarily for high net worth and ultra-high net worth individuals, including business owners, executives, heirs of rich families, and other affluent individuals in Asia primarily in the mainland China or Hong Kong. The company was incorporated in 2018 and is based in Central, Hong Kong. Prestige Wealth Inc. is a subsidiary of Prestige Financial Holdings Group Limited.

About NU

Nu Holdings Ltd. is a holding company, which engages in the provision of digital banking services. The company was founded by David Vélez Osorno, Cristina Helena Zingaretti Junqueira, and Adam Edward Wible on February 26, 2016 and is headquartered in George Town, Cayman Islands.