Analyzing KindlyMD (NASDAQ:NAKA) & Western Union (NYSE:WU)

Western Union (NYSE:WU) and KindlyMD (NASDAQ:NAKA) are both small-cap finance companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, analyst recommendations, valuation, profitability, earnings and dividends.

Profitability

This table compares Western Union and KindlyMD’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Western Union	9.79%	50.89%	5.87%
KindlyMD	-1,067.93%	-63.45%	-41.04%

Risk & Volatility

Western Union has a beta of 0.5, meaning that its stock price is 50% less volatile than the S&P 500. Comparatively, KindlyMD has a beta of 15.99, meaning that its stock price is 1,499% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings for Western Union and KindlyMD, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Western Union	8	6	0	0	1.43
KindlyMD	1	1	3	0	2.40

Western Union currently has a consensus price target of $7.55, indicating a potential upside of 23.80%. KindlyMD has a consensus price target of $20.00, indicating a potential upside of 117.63%. Given KindlyMD’s stronger consensus rating and higher probable upside, analysts clearly believe KindlyMD is more favorable than Western Union.

Valuation & Earnings

This table compares Western Union and KindlyMD”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Western Union	$4.05 billion	0.47	$499.60 million	$1.23	4.96
KindlyMD	$1.82 million	90.39	-$52.23 million	($35.85)	-0.26

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

Institutional & Insider Ownership

91.8% of Western Union shares are owned by institutional investors. 3.3% of Western Union shares are owned by insiders. Comparatively, 24.5% of KindlyMD shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Western Union beats KindlyMD on 8 of the 14 factors compared between the two stocks.

About Western Union

The Western Union Company provides money movement and payment services worldwide. The company operates through Consumer Money Transfer and Consumer Services segments. The Consumer Money Transfer segment facilitates money transfers for international cross-border and intra-country transfers, primarily through a network of retail agent locations, as well as through websites and mobile devices. The Consumer Services segments offers bill payment services, which facilitate payments for consumers, businesses, and other organizations, as well as money order services, retail foreign exchange services, prepaid cards, lending partnerships, and digital wallets. The company was founded in 1851 and is headquartered in Denver, Colorado.

About KindlyMD

Kindly MD, Inc. (“KindlyMD” or “Kindly”) is a Utah company formed in 2019. KindlyMD is a healthcare data company, focused on holistic pain management and reducing the impact of the opioid epidemic. KindlyMD offers direct health care to patients integrating prescription medicine and behavioral health services to reduce opioid use in the chronic pain patient population. Kindly believes these methods will help prevent and reduce addiction and dependency on opiates. Our specialty outpatient clinical services are offered on a fee-for-service basis. The Company offers evaluation and management, including, but not limited to chronic pain, functional medicine, cognitive behavioral therapy, trauma and addiction therapy, recovery support services, overdose education efforts, peer support, limited urgent care, preventative medicine, medically managed weight loss, and hormone therapy. Through its focus on an embedded model of prescriber and therapist teams, KindlyMD develops patient-specific care programs with a specific mission to reduce opioid use in the patient population while successfully treating patients with effective and evidence-based non-opioid alternatives in close conjunction with behavioral therapy. Beyond its treatment of patients, KindlyMD collects data focused on why and how patients turn to alternative treatments to reduce prescription medication use and addiction. The Company captures all relevant datapoints to assist and appropriately treat each individual patient. This also results in valuable data for the Company and the Company’s investors. We strive to become a source for evidence-based guidelines, data, treatment models, and education in the fight against the opioid crisis in America. Business Revenue Streams We currently earn revenue through (i) patient care services related to medical evaluation and treatment and (ii) product retail sales. Our forecasted plan is to operate across various revenue streams: (i) medical evaluation and treatment visits reimbursed by Medicare, Medicaid, and commercial insurance payers as well as self-pay services, (ii) data collection and research, (iii) education partnerships, (iv) service affiliate agreements, and (v) retail sales. Our principal executive offices are located at 5097 S 900 E, Suite 100 Salt Lake City, UT.