Sunlight Financial (NYSE:SUNL – Get Rating) and SBI (OTCMKTS:SBHGF – Get Rating) are both business services companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, risk, earnings, analyst recommendations, dividends, institutional ownership and profitability.
Insider & Institutional Ownership
23.5% of Sunlight Financial shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Risk and Volatility
Sunlight Financial has a beta of 0.98, meaning that its share price is 2% less volatile than the S&P 500. Comparatively, SBI has a beta of 1.48, meaning that its share price is 48% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of current ratings and target prices for Sunlight Financial and SBI, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Sunlight Financial | 0 | 0 | 6 | 0 | 3.00 |
| SBI | 0 | 0 | 0 | 0 | N/A |
Sunlight Financial presently has a consensus price target of $8.67, suggesting a potential upside of 88.41%. Given Sunlight Financial’s higher possible upside, analysts clearly believe Sunlight Financial is more favorable than SBI.
Profitability
This table compares Sunlight Financial and SBI’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Sunlight Financial | N/A | -3.95% | -2.69% |
| SBI | 19.21% | 16.93% | 1.75% |
Valuation and Earnings
This table compares Sunlight Financial and SBI’s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Sunlight Financial | $114.74 million | 5.31 | -$153.43 million | N/A | N/A |
| SBI | $5.11 billion | 1.03 | $762.32 million | $4.09 | 5.57 |
SBI has higher revenue and earnings than Sunlight Financial.
Summary
SBI beats Sunlight Financial on 6 of the 10 factors compared between the two stocks.
Sunlight Financial Company Profile (Get Rating)
Sunlight Financial Holdings Inc. operates a business-to-business-to-consumer technology-enabled point-of-sale financing platform in the United States. Its platform is used to provide secured and unsecured loans for homeowners originated by third-party lenders to purchase and install residential solar energy systems, and other home improvements. The company was founded in 2014 and is based in Charlotte, North Carolina.
SBI Company Profile (Get Rating)
SBI Holdings, Inc. engages in the online financial service businesses and investment activities in Japan and internationally. It operates through Financial Services Business; Asset Management Business; and Biotechnology, Healthcare and Medical Informatics Business segments. The company offers financial products and services, including brokerage and investment banking; Internet banking; auto, cancer, fire, and earthquake, as well as life insurance; short term insurance; FX margin trading; online securities; exchange and transaction services related to digital assets; management of defined-contribution pension, etc.; leasing and lending services; operation of proprietary trading system; control and operation of the e-commerce settlement business; and remittance and back office support services. It also provides private equity, venture capital fund management, M&A advisory, savings bank, commercial banking, investment advisory and management, and rating information services; real estate secured loans; and rent guarantees for rental housing. In addition, the company researches, manufactures, and sells pharmaceutical products, health foods, and cosmetics; develops, produces, sells, and maintains medical information integration systems; and researches and develops antibody drugs and nucleic acid medicines for cancer and immunology. Further, it operates a fund-raising platform; acts as a crypto-asset broker; develops, manufactures, and sells crypto-asset mining systems; operates and develops cybersecurity systems; provides blockchain platform; invests in real estate properties; exports used cars; and offers healthcare services, as well as revitalization services. Additionally, the company engages in the mining of digital assets; and e-sports and renewable energy business. The company was formerly known as Softbank Investment Corporation and changed its name to SBI Holdings, Inc. in July 2005. SBI Holdings, Inc. was incorporated in 1999 and is headquartered in Tokyo, Japan.
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