Portman Ridge Finance (NASDAQ:PTMN) and Rand Capital (NASDAQ:RAND) are both small-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, earnings, valuation, dividends, risk, profitability and institutional ownership.
Profitability
This table compares Portman Ridge Finance and Rand Capital's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Portman Ridge Finance | -47.13% | 7.87% | 3.40% |
Rand Capital | 85.66% | 2.16% | 1.77% |
Dividends
Portman Ridge Finance pays an annual dividend of $0.24 per share and has a dividend yield of 10.2%. Rand Capital pays an annual dividend of $0.40 per share and has a dividend yield of 2.1%. Portman Ridge Finance pays out 300.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Portman Ridge Finance has increased its dividend for 1 consecutive years. Portman Ridge Finance is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Institutional and Insider Ownership
12.8% of Portman Ridge Finance shares are owned by institutional investors. Comparatively, 2.5% of Rand Capital shares are owned by institutional investors. 4.7% of Portman Ridge Finance shares are owned by insiders. Comparatively, 67.1% of Rand Capital shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Risk & Volatility
Portman Ridge Finance has a beta of 1.34, meaning that its share price is 34% more volatile than the S&P 500. Comparatively, Rand Capital has a beta of 0.46, meaning that its share price is 54% less volatile than the S&P 500.
Valuation & Earnings
This table compares Portman Ridge Finance and Rand Capital's revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Portman Ridge Finance | $26.50 million | 6.70 | $-12,500,000.00 | $0.08 | 29.50 |
Rand Capital | $2.72 million | 17.75 | $-2,290,000.00 | N/A | N/A |
Rand Capital has lower revenue, but higher earnings than Portman Ridge Finance.
Analyst Recommendations
This is a summary of recent recommendations and price targets for Portman Ridge Finance and Rand Capital, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Portman Ridge Finance | 0 | 1 | 0 | 0 | 2.00 |
Rand Capital | 0 | 0 | 0 | 0 | N/A |
Portman Ridge Finance presently has a consensus price target of $2.00, indicating a potential downside of 15.25%. Given Portman Ridge Finance's higher possible upside, equities analysts plainly believe Portman Ridge Finance is more favorable than Rand Capital.
Summary
Portman Ridge Finance beats Rand Capital on 8 of the 14 factors compared between the two stocks.