Analyzing Nuvei (NASDAQ:NVEI) and Heritage Global (NASDAQ:HGBL)

Heritage Global (NASDAQ:HGBL) and Nuvei (NASDAQ:NVEI) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, risk, profitability, institutional ownership, analyst recommendations, dividends and earnings.

Profitability

This table compares Heritage Global and Nuvei’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Heritage Global	20.29%	19.14%	13.81%
Nuvei	-0.87%	6.98%	2.80%

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Heritage Global and Nuvei, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Heritage Global	0	0	0	0	0.00
Nuvei	0	9	7	0	2.44

Nuvei has a consensus target price of $32.08, indicating a potential downside of 4.39%. Given Nuvei’s stronger consensus rating and higher probable upside, analysts plainly believe Nuvei is more favorable than Heritage Global.

Insider & Institutional Ownership

33.5% of Heritage Global shares are owned by institutional investors. Comparatively, 42.5% of Nuvei shares are owned by institutional investors. 12.8% of Heritage Global shares are owned by insiders. Comparatively, 20.0% of Nuvei shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Volatility and Risk

Heritage Global has a beta of 1.19, indicating that its share price is 19% more volatile than the S&P 500. Comparatively, Nuvei has a beta of 2.51, indicating that its share price is 151% more volatile than the S&P 500.

Valuation and Earnings

This table compares Heritage Global and Nuvei”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Heritage Global	$55.02 million	1.11	$12.48 million	$0.28	5.82
Nuvei	$1.19 billion	4.00	-$7.84 million	($0.09)	-372.74

Heritage Global has higher earnings, but lower revenue 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.

Summary

Nuvei beats Heritage Global on 8 of the 14 factors compared between the two stocks.

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.

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.