Analyzing Argo Blockchain (NASDAQ:ARBK) and Green Dot (NYSE:GDOT)

Green Dot (NYSE:GDOT) and Argo Blockchain (NASDAQ:ARBK) are both small-cap business services companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, valuation, risk, profitability, analyst recommendations, earnings and institutional ownership.

Institutional & Insider Ownership

92.6% of Green Dot shares are held by institutional investors. Comparatively, 2.4% of Argo Blockchain shares are held by institutional investors. 1.1% of Green Dot shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Green Dot	-3.39%	3.84%	0.65%
Argo Blockchain	-92.08%	N/A	-59.43%

Earnings and Valuation

This table compares Green Dot and Argo Blockchain”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Green Dot	$1.63 billion	0.28	$6.72 million	($1.05)	-8.07
Argo Blockchain	$60.03 million	0.51	-$35.03 million	($0.72)	-0.59

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

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Green Dot and Argo Blockchain, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Green Dot	1	2	1	0	2.00
Argo Blockchain	1	2	0	0	1.67

Green Dot currently has a consensus price target of $10.75, indicating a potential upside of 26.84%. Argo Blockchain has a consensus price target of $1.45, indicating a potential upside of 239.58%. Given Argo Blockchain’s higher possible upside, analysts plainly believe Argo Blockchain is more favorable than Green Dot.

Volatility & Risk

Green Dot has a beta of 0.9, suggesting that its stock price is 10% less volatile than the S&P 500. Comparatively, Argo Blockchain has a beta of 1.95, suggesting that its stock price is 95% more volatile than the S&P 500.

Summary

Green Dot beats Argo Blockchain on 9 of the 14 factors compared between the two stocks.

About Green Dot

Green Dot Corporation, a financial technology and registered bank holding company, provides various financial services to consumers and businesses in the United States. It operates through three segments: Consumer Services, Business to Business Services, and Money Movement Services. The company provides deposit account programs, including consumer and small business checking account products, network-branded reloadable prepaid debit cards and gift cards, and secured credit programs. It offers money processing services, such as cash transfer services that enable consumers to deposit or pick up cash and pay bills with cash at the point-of-sale at any participating retailer; and simply paid disbursement services, which enable wages and authorized funds disbursement to its deposit account programs and accounts issued by any third-party bank or program manager. In addition, the company offers tax processing services comprising tax refund transfers, which provide the processing technology to facilitate receipt of a taxpayers' refund proceeds; small business lending to independent tax preparation providers that seek small advances; and fast cash advance, a loan that enables tax refund recipients. Green Dot Corporation was incorporated in 1999 and is headquartered in Austin, Texas.

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.