Stellus Capital Investment (NYSE:SCM) and Allied Minds (OTCMKTS:ALLWF) are both small-cap finance companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, valuation, earnings, profitability, dividends, analyst recommendations and institutional ownership.
Stellus Capital Investment pays an annual dividend of $1.36 per share and has a dividend yield of 9.8%. Allied Minds does not pay a dividend. Stellus Capital Investment pays out 95.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
This is a summary of current recommendations and price targets for Stellus Capital Investment and Allied Minds, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Stellus Capital Investment||0||1||0||0||2.00|
Stellus Capital Investment currently has a consensus price target of $14.00, indicating a potential upside of 1.38%. Given Stellus Capital Investment’s higher possible upside, research analysts plainly believe Stellus Capital Investment is more favorable than Allied Minds.
Risk and Volatility
Stellus Capital Investment has a beta of 0.73, meaning that its stock price is 27% less volatile than the S&P 500. Comparatively, Allied Minds has a beta of 0.18, meaning that its stock price is 82% less volatile than the S&P 500.
Insider and Institutional Ownership
17.5% of Stellus Capital Investment shares are held by institutional investors. 5.4% of Stellus Capital Investment shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
This table compares Stellus Capital Investment and Allied Minds’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Stellus Capital Investment||51.60%||9.97%||4.47%|
Valuation and Earnings
This table compares Stellus Capital Investment and Allied Minds’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Stellus Capital Investment||$53.27 million||4.90||$26.19 million||$1.42||9.73|
Stellus Capital Investment has higher revenue and earnings than Allied Minds.
Stellus Capital Investment beats Allied Minds on 9 of the 12 factors compared between the two stocks.
Stellus Capital Investment Company Profile
Stellus Capital Investment Corporation is a business development company specializing in investments in private middle-market companies. It invests through first lien, second lien, unitranche, and mezzanine debt financing, often with a corresponding equity investment. The fund seeks to invest in companies with an EBITDA between $5 million and $50 million.
Allied Minds Company Profile
Allied Minds plc is a private equity and venture capital firm specializing in pre-seed, seed, start-up, and early stage technology investments. The firm prefers to invest across all products, services, and industries with a focus on the life science and technology sector including medical devices, diagnostics, biopharmaceuticals, big data, cyber security, communications, semiconductors, and food safety. It primarily invests in companies based in the United States, but depending on opportunities this could be expanded to a global network of partners and investments. The firm typically invests between $0.25 million and $1 million in seed investments and from $5 million to $10 million in Series A investments. The firm focuses on commercializing technologies from leading United States Universities and national labs. It seeks to take majority equity positions in its portfolio companies. The firm partners with universities to fund licensing deals and corporate spin-outs. It prefers to continue to invest alongside a syndicate for larger Series A and follow-on rounds. Allied Minds plc is based in Boston, Massachusetts with additional offices in London, United Kingdom; Los Angeles, California; Seattle, Washington; New York; New York and Washington, DC.
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