Head-To-Head Analysis: NerdWallet (NASDAQ:NRDS) and Applied Digital (NASDAQ:APLD)

NerdWallet (NASDAQ:NRDS) and Applied Digital (NASDAQ:APLD) are two notable finance companies, but which one stands out as the better investment? To answer this question, we will analyze various factors such as institutional ownership, dividends, earnings, profitability, analyst recommendations, valuation, and risk.

Valuation & Earnings

Below, we present a comparison of the gross revenue, earnings per share (EPS), and valuation between NerdWallet and Applied Digital:

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NerdWallet	$637.50 million	1.60	-$11.80 million	($0.14)	-99.43
Applied Digital	$165.57 million	12.26	-$149.27 million	($1.73)	-5.27

NerdWallet leads with higher revenue and earnings compared to Applied Digital. Additionally, the price-to-earnings ratio of NerdWallet is lower, suggesting it is more affordably priced currently.

Analyst Recommendations

The following table summarizes the latest analyst ratings and recommendations for both companies as reported by MarketBeat:

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NerdWallet	0	1	4	0	2.80
Applied Digital	0	0	9	0	3.00

NerdWallet has a consensus price target of $17.20, indicating a potential upside of 23.56%. Meanwhile, Applied Digital boasts a consensus price target of $12.11 with a potential upside of 32.94%. This suggests that analysts view Applied Digital as the more favorable option compared to NerdWallet, given its stronger ratings and upside potential.

Volatility & Risk

When considering volatility, NerdWallet has a beta of 1.33, which means its stock price is 33% more volatile than the S&P 500. In contrast, Applied Digital shows a significantly higher beta of 4.77, indicating its stock is 377% more volatile than the S&P 500.

Profitability

Below is a comparison of net margins, return on equity, and return on assets for NerdWallet and Applied Digital:

	Net Margins	Return on Equity	Return on Assets
NerdWallet	-1.65%	-2.90%	-2.45%
Applied Digital	-127.86%	-117.67%	-27.84%

Institutional and Insider Ownership

NerdWallet has 38.8% of its shares owned by institutional investors, while Applied Digital has a higher rate of 65.7%. Regarding insider ownership, 45.9% of NerdWallet's shares are held by company insiders compared to just 11.8% for Applied Digital. A higher institutional ownership often reflects confidence among large investors that a company will perform well over time.

About NerdWallet

NerdWallet, Inc. provides a digital platform that helps consumers make informed personal finance decisions. The platform connects individuals and small to medium-sized businesses with financial product providers across the United States, the United Kingdom, Australia, and Canada. NerdWallet also offers educational content, tools, and calculators to guide consumers in areas such as credit cards, mortgages, insurance, personal loans, banking, and investing. Founded in 2009, NerdWallet is headquartered in San Francisco, California.

About Applied Digital

Applied Digital Corporation focuses on designing, developing, and operating datacenters in North America. The company delivers digital infrastructure solutions tailored to the high-performance computing sector and also provides cloud services for artificial intelligence, as well as hosting services for high-performance computing and cryptocurrency. Previously known as Applied Blockchain, Inc., the company rebranded to Applied Digital Corporation in November 2022 and is based in Dallas, Texas.

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