Green Dot (NYSE:GDOT) versus Magic Empire Global (NASDAQ:MEGL) Financial Analysis

Green Dot (NYSE:GDOT) and Magic Empire Global (NASDAQ:MEGL) 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 institutional ownership, earnings, risk, profitability, analyst recommendations, dividends and valuation.

Volatility & Risk

Green Dot has a beta of 0.9, meaning that its stock price is 10% less volatile than the S&P 500. Comparatively, Magic Empire Global has a beta of 2.76, meaning that its stock price is 176% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Green Dot and Magic Empire Global, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Green Dot	1	2	0	0	1.67
Magic Empire Global	0	0	0	0	0.00

Green Dot currently has a consensus price target of $10.33, suggesting a potential upside of 34.65%. Given Green Dot’s stronger consensus rating and higher possible upside, research analysts plainly believe Green Dot is more favorable than Magic Empire Global.

Valuation & Earnings

This table compares Green Dot and Magic Empire Global”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Green Dot	$1.63 billion	0.25	$6.72 million	($0.51)	-15.05
Magic Empire Global	$15.43 million	0.38	-$60,000.00	N/A	N/A

Green Dot has higher revenue and earnings than Magic Empire Global.

Institutional and Insider Ownership

92.6% of Green Dot shares are held by institutional investors. Comparatively, 0.5% of Magic Empire Global shares are held by institutional investors. 1.1% of Green Dot shares are held by company insiders. Comparatively, 63.0% of Magic Empire Global shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Green Dot and Magic Empire Global’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%
Magic Empire Global	N/A	N/A	N/A

Summary

Green Dot beats Magic Empire Global on 7 of the 11 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 Magic Empire Global

Magic Empire Global Limited engages in the provision of corporate finance advisory services and underwriting services in Hong Kong. The company provides initial public offering sponsorship, financial and independent financial advisory, post-listing compliance advisory, and underwriting services by acting as global coordinator, bookrunner, lead manager, or underwriter. It also offers corporate services, which include accounting and financial reporting advisory, company secretarial services, internal control enhancement, investor relations advisory, and other consulting services. The company was incorporated in 2016 and is headquartered in Central, Hong Kong.