SBI (OTCMKTS:SBHGF) and Harvest Capital Credit (NASDAQ:HCAP) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, risk, profitability, earnings, dividends, analyst recommendations and valuation.
This table compares SBI and Harvest Capital Credit’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Harvest Capital Credit||31.31%||7.51%||4.64%|
Harvest Capital Credit pays an annual dividend of $0.96 per share and has a dividend yield of 9.1%. SBI does not pay a dividend. Harvest Capital Credit pays out 103.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Earnings and Valuation
This table compares SBI and Harvest Capital Credit’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|SBI||$3.04 billion||N/A||$420.15 million||N/A||N/A|
|Harvest Capital Credit||$16.18 million||4.10||$5.07 million||$0.93||11.39|
SBI has higher revenue and earnings than Harvest Capital Credit.
Risk & Volatility
SBI has a beta of 5.12, meaning that its share price is 412% more volatile than the S&P 500. Comparatively, Harvest Capital Credit has a beta of 0.71, meaning that its share price is 29% less volatile than the S&P 500.
Insider & Institutional Ownership
9.4% of Harvest Capital Credit shares are owned by institutional investors. 9.3% of Harvest Capital Credit shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
This is a breakdown of current ratings for SBI and Harvest Capital Credit, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Harvest Capital Credit||0||0||0||0||N/A|
SBI beats Harvest Capital Credit on 6 of the 11 factors compared between the two stocks.
SBI Holdings, Inc., together with its subsidiaries, engages in the online financial service businesses and investment activities in Japan and internationally. It operates through Financial Services Business, Asset Management Business, and Biotechnology-Related Business segments. The Financial Services Business segment provides various financial products and services, including brokerage and investment banking, banking, nonlife insurance and short-term small-amount insurance, and housing loan services; and credit card, leasing, remittance, peer-to-peer lending, and other services, as well as foreign-exchange market participant services. This segment operates proprietary trading system, which allows investors to trade stocks and bonds through electronic trading systems without stock exchanges. The Asset Management Business segment is involved in the venture capital, buyout investment, and financial and economic information activities. This segment also provides asset management services; and invests in hedge funds and private equity funds. The Biotechnology-Related Business segment develops, distributes, and sells pharmaceutical products, health foods, and cosmetics with 5-ALA as ingredient. This segment is also involved in the research and development of treatment methods and pharmaceuticals in autoimmune diseases and cancer fields. The company is also involved in the operation of various online intermediate services; development and trading of investment properties; provision of guarantee services for house rentals; and manufacture of mining chips, and development of mining systems. The company was formerly known as Softbank Investment Corporation and changed its name to SBI Holdings, Inc. in July 2005. SBI Holdings, Inc. was founded in 1999 and is headquartered in Tokyo, Japan.
About Harvest Capital Credit
Harvest Capital Credit Corporation is a business development company providing structured credit to small businesses and specializing in leveraged buyouts, add-on acquisitions, recapitalizations, growth financings and debt refinancing investments. It prefers to invest in North America-based companies. The firm invest in multiple layers of a company's capital structure, from senior secured debt to subordinated debt and minority equity capital. The firm typically invests in companies with target equity size of $250k to $1 million and target loan size of $2 million to $15 million, having revenue between $10 million and $100 million with at least $1.5 million of annual EBITDA. Harvest Capital Credit Corporation was founded in 2012 and is based in New York, New York.
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