Analyzing NU (NYSE:NU) & QCR (NASDAQ:QCRH)

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

Dividends

NU pays an annual dividend of $1.67 per share and has a dividend yield of 11.8%. QCR pays an annual dividend of $0.40 per share and has a dividend yield of 0.4%. NU pays out 225.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. QCR pays out 4.7% of its earnings in the form of a dividend.

Insider and Institutional Ownership

84.0% of NU shares are owned by institutional investors. Comparatively, 70.0% of QCR shares are owned by institutional investors. 3.2% of QCR shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
NU	18.65%	31.59%	4.97%
QCR	22.86%	12.87%	1.50%

Analyst Recommendations

This is a summary of recent ratings and target prices for NU and QCR, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NU	1	4	9	0	2.57
QCR	0	2	4	0	2.67

NU presently has a consensus price target of $17.91, indicating a potential upside of 26.89%. QCR has a consensus price target of $108.75, indicating a potential upside of 6.08%. Given NU’s higher possible upside, analysts clearly believe NU is more favorable than QCR.

Volatility and Risk

NU has a beta of 0.94, meaning that its stock price is 6% less volatile than the S&P 500. Comparatively, QCR has a beta of 0.73, meaning that its stock price is 27% less volatile than the S&P 500.

Valuation and Earnings

This table compares NU and QCR”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NU	$13.17 billion	5.20	$2.87 billion	$0.74	19.07
QCR	$603.75 million	2.78	$127.19 million	$8.46	12.12

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

Summary

NU beats QCR on 11 of the 16 factors compared between the two stocks.

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.

About QCR

QCR Holdings, Inc., a multi-bank holding company, provides commercial and consumer banking, and trust and asset management services. The company’s deposit products include noninterest-bearing demand, interest-bearing demand, time, and brokered deposits. It also provides various commercial and retail lending/leasing, and investment services to corporations, partnerships, individuals, and government agencies. The company’s loan portfolio comprises loans to small and mid-sized businesses; business loans, including lines of credit for working capital and operational purposes; term loans for the acquisition of facilities, equipment, and other purposes; commercial and residential real estate loans; and installment and other consumer loans, such as home improvement, home equity, motor vehicle, and signature loans, as well as small personal credit lines. In addition, it engages in leasing of machinery and equipment to commercial and industrial businesses under direct financing lease contracts; and issuance of trust preferred securities. QCR Holdings, Inc. was incorporated in 1993 and is headquartered in Moline, Illinois.