Applied Digital (NASDAQ:APLD – Get Free Report) and NerdWallet (NASDAQ:NRDS – Get Free Report) are both small-cap finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, valuation, risk, earnings and profitability.
Risk & Volatility
Applied Digital has a beta of 4.77, meaning that its share price is 377% more volatile than the S&P 500. Comparatively, NerdWallet has a beta of 1.33, meaning that its share price is 33% more volatile than the S&P 500.
Earnings & Valuation
This table compares Applied Digital and NerdWallet”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Applied Digital | $165.57 million | 10.47 | -$149.27 million | ($1.73) | -4.50 |
| NerdWallet | $637.50 million | 1.57 | -$11.80 million | ($0.14) | -97.59 |
Institutional & Insider Ownership
65.7% of Applied Digital shares are owned by institutional investors. Comparatively, 38.8% of NerdWallet shares are owned by institutional investors. 11.8% of Applied Digital shares are owned by insiders. Comparatively, 45.9% of NerdWallet shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Analyst Ratings
This is a summary of current ratings and recommmendations for Applied Digital and NerdWallet, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Applied Digital | 0 | 0 | 9 | 0 | 3.00 |
| NerdWallet | 0 | 1 | 4 | 0 | 2.80 |
Applied Digital presently has a consensus target price of $12.11, indicating a potential upside of 55.67%. NerdWallet has a consensus target price of $17.20, indicating a potential upside of 25.89%. Given Applied Digital’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Applied Digital is more favorable than NerdWallet.
Profitability
This table compares Applied Digital and NerdWallet’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Applied Digital | -127.86% | -117.67% | -27.84% |
| NerdWallet | -1.65% | -2.90% | -2.45% |
About Applied Digital
Applied Digital Corporation designs, develops, and operates datacenters in North America. Its datacenters provide digital infrastructure solutions to the high-performance computing industry. The company also provides artificial intelligence cloud services, high performance computing datacenter hosting, and crypto datacenter hosting services. The company was formerly known as Applied Blockchain, Inc. and changed its name to Applied Digital Corporation in November 2022. Applied Digital Corporation is based in Dallas, Texas.
About NerdWallet
NerdWallet, Inc. operates a digital platform that provides consumer-driven advice about personal finance by connecting individuals and small and mid-sized businesses with financial products providers in the United States, the United Kingdom, Australia, and Canada. Its platform offers guidance to consumers through educational content, tools and calculators, and product marketplaces, as well as through NerdWallet app for various financial products, including credit cards, mortgages, insurance, SMB products, personal loans, banking, investing, and student loans. The company was founded in 2009 and is based in San Francisco, California.
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