Comparing Bitcoin Depot (NASDAQ:BTM) and NU (NYSE:NU)

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

Institutional and Insider Ownership

9.2% of Bitcoin Depot shares are held by institutional investors. Comparatively, 84.0% of NU shares are held by institutional investors. 70.2% of Bitcoin Depot shares are held by insiders. Comparatively, 1.2% of NU shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Risk & Volatility

Bitcoin Depot has a beta of -0.09, indicating that its share price is 109% less volatile than the S&P 500. Comparatively, NU has a beta of 1.05, indicating that its share price is 5% more volatile than the S&P 500.

Valuation & Earnings

This table compares Bitcoin Depot and NU”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bitcoin Depot	$585.28 million	0.16	-$26.10 million	($0.93)	-1.65
NU	$7.85 billion	6.63	$1.03 billion	$0.36	30.33

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Bitcoin Depot	-2.28%	-488.33%	-15.15%
NU	16.28%	28.70%	4.41%

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bitcoin Depot	0	0	2	1	3.33
NU	1	4	5	0	2.40

Bitcoin Depot currently has a consensus price target of $3.75, indicating a potential upside of 145.10%. NU has a consensus price target of $15.63, indicating a potential upside of 43.16%. Given Bitcoin Depot’s stronger consensus rating and higher possible upside, analysts clearly believe Bitcoin Depot is more favorable than NU.

Summary

NU beats Bitcoin Depot on 11 of the 15 factors compared between the two stocks.

About Bitcoin Depot

Bitcoin Depot Inc. owns and operates a network of cryptocurrency kiosks in North America. Its customers can buy and sell bitcoin, litecoin, and ethereum cryptocurrencies using the BTM kiosk network and other services. The company also engages in the sale of cryptocurrency to consumers at a network of retail locations through its BDCheckout product offering, as well as its website through over-the-counter trade. The company is headquartered in Atlanta, Georgia. Bitcoin Depot Inc. is a subsidiary of BT Assets, Inc.

About NU

Nu Holdings Ltd. provides digital banking platform and digital financial services in Brazil, Mexico, Colombia, and internationally. It offers Nu credit and debit cards; Ultraviolet credit and debit cards; and mobile payment solutions for NuAccount customers to make and receive transfers, pay bills, and make everyday purchases through their mobile phones. The company provides savings solutions, such as Nu Personal Accounts, a digital account solution that supports all personal finance activities, from daily purchases and money transfers to savings; and Nu business accounts designed specifically for entrepreneur customers and their businesses. In addition, it offers NuCrypto, a solution for buying and selling cryptocurrencies through the Nu app; NuInvest, an investment product that provides equity, fixed-income, options, and ETF products, as well as multimarket funds with curated asset allocations based on the customer's risk profile and financial position; personal unsecured loans; in-app buy now pay later' solution for Nu card customers to pay credit and debit purchases, and banking payment slips over time in up to twelve installments; and NuInsurance protecting solutions to help its customers secure life insurance and funeral benefits. The company was founded in 2013 and is headquartered in Sao Paulo, Brazil.