NewtekOne (NASDAQ:NEWT) versus Brookfield Wealth Solutions (NYSE:BNT) Critical Survey

NewtekOne (NASDAQ:NEWT) and Brookfield Wealth Solutions (NYSE:BNT) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, valuation, risk, dividends, profitability and analyst recommendations.

Earnings and Valuation

This table compares NewtekOne and Brookfield Wealth Solutions”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NewtekOne	$383.33 million	1.00	$60.51 million	$2.27	5.83
Brookfield Wealth Solutions	$11.64 billion	1.30	$766.00 million	$0.25	178.65

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

Profitability

This table compares NewtekOne and Brookfield Wealth Solutions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NewtekOne	16.15%	19.00%	2.50%
Brookfield Wealth Solutions	0.16%	0.10%	0.01%

Institutional & Insider Ownership

38.4% of NewtekOne shares are owned by institutional investors. Comparatively, 20.3% of Brookfield Wealth Solutions shares are owned by institutional investors. 5.9% of NewtekOne shares are owned by insiders. Comparatively, 1.0% of Brookfield Wealth Solutions shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Dividends

NewtekOne pays an annual dividend of $0.76 per share and has a dividend yield of 5.7%. Brookfield Wealth Solutions pays an annual dividend of $0.28 per share and has a dividend yield of 0.6%. NewtekOne pays out 33.5% of its earnings in the form of a dividend. Brookfield Wealth Solutions pays out 112.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. NewtekOne has increased its dividend for 1 consecutive years. NewtekOne is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for NewtekOne and Brookfield Wealth Solutions, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NewtekOne	0	3	0	1	2.50
Brookfield Wealth Solutions	0	1	0	0	2.00

NewtekOne presently has a consensus price target of $15.00, suggesting a potential upside of 13.38%. Given NewtekOne’s stronger consensus rating and higher probable upside, equities research analysts clearly believe NewtekOne is more favorable than Brookfield Wealth Solutions.

Risk & Volatility

NewtekOne has a beta of 1.29, indicating that its share price is 29% more volatile than the S&P 500. Comparatively, Brookfield Wealth Solutions has a beta of 1.48, indicating that its share price is 48% more volatile than the S&P 500.

Summary

NewtekOne beats Brookfield Wealth Solutions on 12 of the 17 factors compared between the two stocks.

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.

About Brookfield Wealth Solutions

Brookfield Wealth Solutions is focused on securing the financial futures of individuals and institutions through a range of retirement services, wealth protection products and tailored capital solutions. Through our operating subsidiaries, we offer a broad range of insurance products and services, including annuities, personal and commercial property and casualty insurance and life insurance.The company was incorporated in 2020 and is headquartered in Pembroke, Bermuda.