Financial Comparison: Orion Digital (NASDAQ:ORIO) vs. First Horizon (NYSE:FHN)

Orion Digital (NASDAQ:ORIO) and First Horizon (NYSE:FHN) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, earnings, valuation, institutional ownership, dividends, analyst recommendations and profitability.

Profitability

This table compares Orion Digital and First Horizon’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Orion Digital	-24.49%	-6.17%	-2.56%
First Horizon	21.12%	12.06%	1.26%

Earnings and Valuation

This table compares Orion Digital and First Horizon”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Orion Digital	$68.07 million	0.35	-$6.11 million	($0.50)	-2.02
First Horizon	$3.42 billion	3.37	$982.00 million	$2.09	11.65

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

Analyst Recommendations

This is a breakdown of current ratings for Orion Digital and First Horizon, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Orion Digital	1	1	0	0	1.50
First Horizon	1	11	9	0	2.38

First Horizon has a consensus target price of $27.45, suggesting a potential upside of 12.75%. Given First Horizon’s stronger consensus rating and higher possible upside, analysts plainly believe First Horizon is more favorable than Orion Digital.

Insider and Institutional Ownership

14.8% of Orion Digital shares are owned by institutional investors. Comparatively, 80.3% of First Horizon shares are owned by institutional investors. 12.3% of Orion Digital shares are owned by company insiders. Comparatively, 0.9% of First Horizon shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Volatility and Risk

Orion Digital has a beta of 2.55, meaning that its share price is 155% more volatile than the S&P 500. Comparatively, First Horizon has a beta of 0.6, meaning that its share price is 40% less volatile than the S&P 500.

Summary

First Horizon beats Orion Digital on 12 of the 14 factors compared between the two stocks.

About Orion Digital

Mogo Inc. operates as a financial technology company in Canada and internationally. The company provides digital solutions to the consumers to get in control of their financial health. It offers Mogo app to access a digital spending account with Mogo Visa Platinum Prepaid Card; MogoCrypto that enables the buying and selling of bitcoin; MogoProtect, a free ID fraud protection and monthly credit score monitoring; MogoMortgage, a digital mortgage experience; and MogoMoney that provides access to personal loans. The company also offers Mogo Trade, a free stock trading platform with real-time stock quotes and funding; and Mogo Ventures to manage its existing investments in strategic partners and companies. In addition, it operates Carta, a digital payments software platform that enable financial technology companies, banks, and corporations to issue payment products to consumers via multiple channels, including physical, virtual, and tokenized cards, as well as payment switching and routing services. Mogo Inc. was founded in 2003 and is headquartered in Vancouver, Canada.

About First Horizon

First Horizon Corporation operates as the bank holding company for First Horizon Bank that provides various financial services. The company operates through Regional Banking and Specialty Banking segments. It offers general banking services for consumers, businesses, financial institutions, and governments. The company also accepts deposits; provides underwriting services for bank-eligible securities and other fixed-income securities by financial subsidiaries; sells loans and derivatives; financial planning; and offers investment and financial advisory services. In addition, it offers mortgage banking; loan syndications; brokerage services; commercial and business banking for business enterprises, consumer banking, and private client and wealth management services; capital markets, professional commercial real estate, mortgage warehouse and asset-based lending, franchise and equipment finance, tax credit finance, energy and healthcare finance, asset management, and corporate and correspondent banking services. Further, the company provides transaction processing services including check clearing services and remittance processing, credit cards, investment, and sale of mutual fund and retail insurances, as well as trust, fiduciary, and agency services. First Horizon Corporation was founded in 1864 and is headquartered in Memphis, Tennessee.