Contrasting Greystone Housing Impact Investors (NYSE:GHI) and NU (NYSE:NU)

NU (NYSE:NU) and Greystone Housing Impact Investors (NYSE:GHI) are both business services companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, dividends, profitability, valuation, earnings, institutional ownership and risk.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for NU and Greystone Housing Impact Investors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NU	0	3	5	0	2.63
Greystone Housing Impact Investors	0	0	3	0	3.00

NU currently has a consensus price target of $15.21, indicating a potential upside of 1.82%. Greystone Housing Impact Investors has a consensus price target of $17.33, indicating a potential upside of 31.71%. Given Greystone Housing Impact Investors’ stronger consensus rating and higher probable upside, analysts plainly believe Greystone Housing Impact Investors is more favorable than NU.

Dividends

NU pays an annual dividend of $1.67 per share and has a dividend yield of 11.1%. Greystone Housing Impact Investors pays an annual dividend of $1.48 per share and has a dividend yield of 11.2%. NU pays out 642.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Greystone Housing Impact Investors pays out 78.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Greystone Housing Impact Investors has raised its dividend for 4 consecutive years. Greystone Housing Impact Investors is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares NU and Greystone Housing Impact Investors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NU	15.11%	27.00%	4.19%
Greystone Housing Impact Investors	32.12%	6.90%	1.50%

Volatility and Risk

NU has a beta of 1.15, suggesting that its share price is 15% more volatile than the S&P 500. Comparatively, Greystone Housing Impact Investors has a beta of 0.68, suggesting that its share price is 32% less volatile than the S&P 500.

Valuation & Earnings

This table compares NU and Greystone Housing Impact Investors”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NU	$7.25 billion	9.88	$1.03 billion	$0.26	57.77
Greystone Housing Impact Investors	$52.10 million	5.88	$54.01 million	$1.89	6.96

NU has higher revenue and earnings than Greystone Housing Impact Investors. Greystone Housing Impact Investors is trading at a lower price-to-earnings ratio than NU, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

80.9% of NU shares are held by institutional investors. Comparatively, 9.0% of Greystone Housing Impact Investors shares are held by institutional investors. 1.2% of NU shares are held by insiders. Comparatively, 1.3% of Greystone Housing Impact Investors shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

NU beats Greystone Housing Impact Investors on 9 of the 17 factors compared between the two stocks.

About NU

Nu Holdings Ltd. provides digital banking platform and digital financial services in Brazil, Mexico, Colombia, and internationally. It offers Nu credit and debit cards; Ultraviolet credit and debit cards; and mobile payment solutions for NuAccount customers to make and receive transfers, pay bills, and make everyday purchases through their mobile phones. The company provides savings solutions, such as Nu Personal Accounts, a digital account solution that supports all personal finance activities, from daily purchases and money transfers to savings; and Nu business accounts designed specifically for entrepreneur customers and their businesses. In addition, it offers NuCrypto, a solution for buying and selling cryptocurrencies through the Nu app; NuInvest, an investment product that provides equity, fixed-income, options, and ETF products, as well as multimarket funds with curated asset allocations based on the customer's risk profile and financial position; personal unsecured loans; in-app buy now pay later' solution for Nu card customers to pay credit and debit purchases, and banking payment slips over time in up to twelve installments; and NuInsurance protecting solutions to help its customers secure life insurance and funeral benefits. The company was founded in 2013 and is headquartered in Sao Paulo, Brazil.

About Greystone Housing Impact Investors

Greystone Housing Impact Investors LP acquires, holds, sells, and deals in a portfolio of mortgage revenue bonds (MRBs) that are issued to provide construction and/or permanent financing for multifamily, student, and senior citizen housing; skilled nursing properties; and commercial properties in the United States. The company operates in four segments: Affordable Multifamily MRB Investments; Seniors and Skilled Nursing MRB Investments; MF Properties; Market-Rate Joint Venture Investments. It also invests in governmental issuer loans. The company was formerly known as America First Multifamily Investors, L.P. and changed its name to Greystone Housing Impact Investors LP in December 2022. Greystone Housing Impact Investors LP was incorporated in 1998 and is based in Omaha, Nebraska.