Contrasting Pearl Diver Credit (NYSE:PDCC) & NewtekOne (NASDAQ:NEWT)

Pearl Diver Credit (NYSE:PDCC) and NewtekOne (NASDAQ:NEWT) are both small-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, profitability, risk, valuation, earnings and analyst recommendations.

Profitability

This table compares Pearl Diver Credit and NewtekOne’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pearl Diver Credit	N/A	N/A	N/A
NewtekOne	14.65%	19.16%	2.67%

Earnings & Valuation

This table compares Pearl Diver Credit and NewtekOne”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pearl Diver Credit	N/A	N/A	N/A	N/A	N/A
NewtekOne	$338.73 million	0.93	$50.85 million	$2.01	5.99

NewtekOne has higher revenue and earnings than Pearl Diver Credit.

Risk & Volatility

Pearl Diver Credit has a beta of 0.37, suggesting that its stock price is 63% less volatile than the S&P 500. Comparatively, NewtekOne has a beta of 1.25, suggesting that its stock price is 25% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings for Pearl Diver Credit and NewtekOne, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pearl Diver Credit	0	0	0	1	4.00
NewtekOne	0	4	0	0	2.00

Pearl Diver Credit currently has a consensus price target of $19.50, indicating a potential upside of 10.71%. NewtekOne has a consensus price target of $13.00, indicating a potential upside of 8.06%. Given Pearl Diver Credit’s stronger consensus rating and higher possible upside, analysts clearly believe Pearl Diver Credit is more favorable than NewtekOne.

Dividends

Pearl Diver Credit pays an annual dividend of $2.64 per share and has a dividend yield of 15.0%. NewtekOne pays an annual dividend of $0.76 per share and has a dividend yield of 6.3%. NewtekOne pays out 37.8% of its earnings in the form of a dividend. NewtekOne has raised its dividend for 1 consecutive years.

Institutional and Insider Ownership

38.4% of NewtekOne shares are held by institutional investors. 6.7% of NewtekOne shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

NewtekOne beats Pearl Diver Credit on 8 of the 13 factors compared between the two stocks.

About Pearl Diver Credit

Pearl Diver Credit Company Inc. is a newly organized, externally managed, non-diversified, closed-end management investment company. Its primary investment objective is to maximize its portfolio’s total return, with a secondary objective of generating high current income. Pearl Diver Credit Company Inc. is based in NEW YORK.

About NewtekOne

NewtekOne, Inc. operates as the bank holding company for Newtek Bank, National Association that engages in the provision of various business and financial solutions under the Newtek brand name to the small- and medium-sized business market. The company accepts demand, savings, NOW, money market, and time deposits; and provides loans including SBA loans, commercial and industrial loans, and commercial real estate loans. It is also involved in the provision of electronic payment processing services comprising credit and debit card processing services, check approval services, processing equipment, and software, as well as cloud-based Point of Sale systems for a various restaurant, retail, assisted living, taxi cabs, parks, and golf course businesses. In addition, it offers wholesale brokerage insurance agency services; and payroll management, and related payment and tax reporting services to independent business owners. Further, the company provides website hosting, dedicated server hosting, cloud hosting, web design and development, internet marketing, ecommerce, data storage, backup and disaster recovery, and other related services, including consulting and implementing technology solutions for enterprise and commercial clients as well as SMBs. The company was formerly known as Newtek Business Services Corp. and changed its name to NewtekOne, Inc. in January 2023. NewtekOne, Inc. was founded in 1998 and is headquartered in Boca Raton, Florida.