Nuvei (NASDAQ:NVEI – Get Free Report) and Heritage Global (NASDAQ:HGBL – Get Free Report) are both business services companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, earnings, profitability, risk, dividends, institutional ownership and valuation.
Risk & Volatility
Nuvei has a beta of 2.51, suggesting that its share price is 151% more volatile than the S&P 500. Comparatively, Heritage Global has a beta of 1.19, suggesting that its share price is 19% more volatile than the S&P 500.
Profitability
This table compares Nuvei and Heritage Global’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Nuvei | -0.87% | 6.98% | 2.80% |
| Heritage Global | 20.29% | 19.14% | 13.81% |
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Nuvei | 0 | 9 | 7 | 0 | 2.44 |
| Heritage Global | 0 | 0 | 0 | 0 | 0.00 |
Nuvei presently has a consensus target price of $32.08, indicating a potential downside of 4.39%. Given Nuvei’s stronger consensus rating and higher possible upside, analysts plainly believe Nuvei is more favorable than Heritage Global.
Earnings and Valuation
This table compares Nuvei and Heritage Global”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Nuvei | $1.19 billion | 4.00 | -$7.84 million | ($0.09) | -372.74 |
| Heritage Global | $55.02 million | 1.11 | $12.48 million | $0.28 | 5.82 |
Heritage Global has lower revenue, but higher earnings than Nuvei. Nuvei is trading at a lower price-to-earnings ratio than Heritage Global, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
42.5% of Nuvei shares are held by institutional investors. Comparatively, 33.5% of Heritage Global shares are held by institutional investors. 20.0% of Nuvei shares are held by insiders. Comparatively, 12.8% of Heritage Global shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Summary
Nuvei beats Heritage Global on 8 of the 14 factors compared between the two stocks.
About Nuvei
Nuvei Corporation provides payment technology solutions to merchants and partners in North America, Europe, the Middle East and Africa, Latin America, and the Asia Pacific. The company's platform enables customers to pay and/or accept payments worldwide regardless of the location, device, or preferred payment method. Its solutions comprise a fully integrated payments engine with global processing capabilities, a turnkey solution for frictionless payment experiences, and a broad suite of data-driven business intelligence tools and risk management services. The company markets and sells its products and services through direct and indirect sales, strategic platform integrations, local sales teams, and indirect partners. The company was formerly known as Pivotal Development Corporation Inc. and changed its name to Nuvei Corporation in November 2018. Nuvei Corporation was founded in 2003 and is headquartered in Montreal, Canada.
About Heritage Global
Heritage Global Inc., together with its subsidiaries, operates as an asset services company with focus on financial and industrial asset transactions. The company operates in three segments: Auction and Liquidation, Refurbishment & Resale, and Brokerage. It provides a suite of market making, acquisitions, refurbishment, dispositions, valuations, and secured lending services. The company focuses on identifying, valuing, acquiring, and monetizing underlying tangible assets. It acts as an adviser, as well as a principal, acquiring, or brokering manufacturing facilities; surplus industrial machinery and equipment; industrial inventories; and charged-off receivable portfolios. The company was formerly known as Counsel RB Capital Inc. and changed its name to Heritage Global, Inc. in August 2013. Heritage Global, Inc. was founded in 1937 and is headquartered in San Diego, California.
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