Fold (NASDAQ:FLD – Get Free Report) and Finance of America Companies (NYSE:FOA – Get Free Report) are both small-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, risk, earnings, institutional ownership, profitability, analyst recommendations and dividends.
Institutional and Insider Ownership
56.9% of Fold shares are owned by institutional investors. Comparatively, 97.2% of Finance of America Companies shares are owned by institutional investors. 16.7% of Fold shares are owned by insiders. Comparatively, 35.4% of Finance of America Companies shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Profitability
This table compares Fold and Finance of America Companies’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Fold | -258.60% | -116.17% | -55.07% |
| Finance of America Companies | -0.10% | 28.39% | 0.35% |
Risk and Volatility
Earnings and Valuation
This table compares Fold and Finance of America Companies”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Fold | $28.21 million | 1.00 | -$69.59 million | ($1.54) | -0.33 |
| Finance of America Companies | $239.69 million | 0.82 | $45.24 million | ($3.01) | -3.77 |
Finance of America Companies has higher revenue and earnings than Fold. Finance of America Companies is trading at a lower price-to-earnings ratio than Fold, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of recent recommendations and price targets for Fold and Finance of America Companies, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Fold | 1 | 0 | 2 | 0 | 2.33 |
| Finance of America Companies | 2 | 1 | 2 | 0 | 2.00 |
Fold presently has a consensus price target of $2.40, indicating a potential upside of 366.65%. Finance of America Companies has a consensus price target of $30.50, indicating a potential upside of 168.79%. Given Fold’s stronger consensus rating and higher possible upside, research analysts clearly believe Fold is more favorable than Finance of America Companies.
Summary
Finance of America Companies beats Fold on 8 of the 13 factors compared between the two stocks.
About Fold
FTAC Emerald Acquisition Corp. does not have significant operations. It intends to effect a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, and similar business combination with one or more businesses or assets operating in the clean/renewable energy, water sustainability, agricultural technology, shared economy software, and mobility sectors. The company was formerly known as Emerald ESG Acquisition Corp. FTAC Emerald Acquisition Corp. was incorporated in 2021 and is based in Philadelphia, Pennsylvania.
About Finance of America Companies
Finance of America Companies Inc. a financial service holding company, through its subsidiaries, engages in the operation of a retirement solutions platform in the United States. It operates through two segments: Retirement Solutions and Portfolio Management. The Retirement Solutions segment engages in the loan origination activities comprising home equity conversion, proprietary reverse, and hybrid mortgage loans for senior homeowners. The Portfolio Management segment provides product development, loan securitization, loan sales, risk management, servicing oversight, and asset management services for borrowers and investors. The company was founded in 2013 and is headquartered in Plano, Texas.
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