Contrasting Freightos (NASDAQ:CRGO) & Green Dot (NYSE:GDOT)

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

Valuation and Earnings

This table compares Green Dot and Freightos”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Green Dot	$2.08 billion	0.30	-$98.87 million	($1.78)	-6.23
Freightos	$29.46 million	3.02	-$17.52 million	($0.35)	-4.94

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

Analyst Ratings

This is a breakdown of current recommendations for Green Dot and Freightos, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Green Dot	2	4	1	0	1.86
Freightos	1	0	1	0	2.00

Green Dot currently has a consensus target price of $13.56, indicating a potential upside of 22.24%. Freightos has a consensus target price of $3.00, indicating a potential upside of 73.41%. Given Freightos’ stronger consensus rating and higher possible upside, analysts clearly believe Freightos is more favorable than Green Dot.

Volatility and Risk

Green Dot has a beta of 0.81, meaning that its stock price is 19% less volatile than the S&P 500. Comparatively, Freightos has a beta of 0.07, meaning that its stock price is 93% less volatile than the S&P 500.

Profitability

This table compares Green Dot and Freightos’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Green Dot	-4.75%	6.93%	1.10%
Freightos	-59.46%	-37.28%	-25.50%

Institutional & Insider Ownership

92.6% of Green Dot shares are owned by institutional investors. Comparatively, 22.7% of Freightos shares are owned by institutional investors. 1.4% of Green Dot shares are owned by insiders. Comparatively, 19.6% of Freightos shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Freightos beats Green Dot on 7 of the 13 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 Freightos

Freightos Limited, together with its subsidiaries, operates a vendor-neutral booking and payment platform for international freight. It operates WebCargo, a platform for connecting carriers and forwarders; and Freightos.com, a platform for connecting service providers to importers/exporters. The company also offers software-as-a-service solutions, such as WebCargo Air for airline rates and ebookings; WebCargo AcceleRate, a multi-modal rate repository; data services; and WebCargo Airline Control Panel that enables airlines to control bookings and optimize pricing with real-time booking analytics. In addition, it provides digital customs brokerage services. The company is based in Jerusalem, Israel.