Head-To-Head Review: Blackhawk Network Holdings (NASDAQ:HAWK) & Green Dot Corporation (GDOT)

Blackhawk Network Holdings (NASDAQ: HAWK) and Green Dot Corporation (NYSE:GDOT) are both mid-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, risk, profitabiliy, institutional ownership, earnings, analyst recommendations and valuation.

Risk and Volatility

Blackhawk Network Holdings has a beta of 0.54, meaning that its stock price is 46% less volatile than the S&P 500. Comparatively, Green Dot Corporation has a beta of 1.06, meaning that its stock price is 6% more volatile than the S&P 500.

Profitability

This table compares Blackhawk Network Holdings and Green Dot Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Blackhawk Network Holdings -0.01% 5.49% 1.55%
Green Dot Corporation 6.65% 10.11% 4.07%

Institutional & Insider Ownership

99.6% of Blackhawk Network Holdings shares are owned by institutional investors. Comparatively, 81.2% of Green Dot Corporation shares are owned by institutional investors. 3.8% of Blackhawk Network Holdings shares are owned by company insiders. Comparatively, 11.0% of Green Dot Corporation shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Blackhawk Network Holdings and Green Dot Corporation’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Blackhawk Network Holdings $2.01 billion 1.18 $144.84 million ($0.01) -4,200.00
Green Dot Corporation $743.75 million 2.70 $102.86 million $0.95 42.47

Blackhawk Network Holdings has higher revenue and earnings than Green Dot Corporation. Blackhawk Network Holdings is trading at a lower price-to-earnings ratio than Green Dot Corporation, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Blackhawk Network Holdings and Green Dot Corporation, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Blackhawk Network Holdings 0 4 8 0 2.67
Green Dot Corporation 0 3 6 0 2.67

Blackhawk Network Holdings presently has a consensus price target of $45.42, suggesting a potential upside of 8.13%. Green Dot Corporation has a consensus price target of $39.29, suggesting a potential downside of 2.64%. Given Blackhawk Network Holdings’ higher possible upside, analysts clearly believe Blackhawk Network Holdings is more favorable than Green Dot Corporation.

Summary

Green Dot Corporation beats Blackhawk Network Holdings on 7 of the 12 factors compared between the two stocks.

Blackhawk Network Holdings Company Profile

Blackhawk Network Holdings, Inc. is a prepaid payment network. The Company operates through three segments: U.S. Retail, International, and Incentives & Rewards. The U.S. Retail segment is engaged in the sale of prepaid products to consumers at its retail distribution partners and online and the sale of telecom handsets to retail distribution partners for resale to consumers. Its Incentives & Rewards segment is engaged in the sale of prepaid products, software and services to its business clients. It distributes closed loop gift cards in categories, including digital media and e-commerce, dining, electronics, entertainment, fashion and travel. It distributes a range of prepaid wireless or cellular cards. It also provides reloads for reloadable prepaid products, including prepaid telecom accounts and general-purpose reloadable cards. Its incentives businesses provide software, consulting services, program management, reward processing and reward fulfillment to its business clients.

Green Dot Corporation Company Profile

Green Dot Corporation (Green Dot) is a pro-consumer financial technology innovator. The Company is a provider of reloadable prepaid debit cards and cash reload processing services in the United States. The Company operates through two segments: Account Services, and Processing and Settlement Services. The Company’s account services segment includes branded deposit account programs, including Green Dot-branded and affinity-branded general purpose reloadable (GPR) card accounts; checking accounts, open-loop gift cards and secured credit cards. The Company’s processing and settlement services include its money processing services, which consists of reload services and 1099 disbursements, and its tax refund processing services. It also has operations in the mobile technology and mobile banking with GoBank mobile checking account. Through its subsidiary, SBBT Holdings, LLC (TPG), it also operates as a processor of tax refund disbursements in the United States.

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