First Eagle Alternative Capital BDC (NASDAQ:FCRD) and Allied Minds (OTCMKTS:ALLWF) are both small-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, risk, profitability, analyst recommendations, valuation, earnings and dividends.
Insider and Institutional Ownership
30.6% of First Eagle Alternative Capital BDC shares are held by institutional investors. 0.4% of First Eagle Alternative Capital BDC shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Profitability
This table compares First Eagle Alternative Capital BDC and Allied Minds' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| First Eagle Alternative Capital BDC | -161.21% | 6.50% | 3.31% |
| Allied Minds | N/A | N/A | N/A |
Risk & Volatility
First Eagle Alternative Capital BDC has a beta of 1.68, meaning that its stock price is 68% more volatile than the S&P 500. Comparatively, Allied Minds has a beta of 0.5, meaning that its stock price is 50% less volatile than the S&P 500.
Earnings & Valuation
This table compares First Eagle Alternative Capital BDC and Allied Minds' top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| First Eagle Alternative Capital BDC | $52.49 million | 2.43 | $-24,610,000.00 | $0.87 | 4.86 |
| Allied Minds | N/A | N/A | N/A | N/A | N/A |
Allied Minds has lower revenue, but higher earnings than First Eagle Alternative Capital BDC.
Analyst Recommendations
This is a summary of current ratings and target prices for First Eagle Alternative Capital BDC and Allied Minds, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| First Eagle Alternative Capital BDC | 0 | 3 | 0 | 0 | 2.00 |
| Allied Minds | 0 | 0 | 0 | 0 | N/A |
First Eagle Alternative Capital BDC currently has a consensus target price of $3.25, suggesting a potential downside of 23.17%. Given First Eagle Alternative Capital BDC's higher possible upside, analysts plainly believe First Eagle Alternative Capital BDC is more favorable than Allied Minds.
Summary
First Eagle Alternative Capital BDC beats Allied Minds on 7 of the 8 factors compared between the two stocks.
