Harvest Capital Credit (NASDAQ:HCAP) and HARGREAVES LANS/ADR (OTCMKTS:HRGLY) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, analyst recommendations, profitability, institutional ownership, valuation and earnings.
This is a breakdown of current ratings and target prices for Harvest Capital Credit and HARGREAVES LANS/ADR, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Harvest Capital Credit||0||0||0||0||N/A|
Valuation and Earnings
This table compares Harvest Capital Credit and HARGREAVES LANS/ADR’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Harvest Capital Credit||$16.18 million||3.99||$5.07 million||$0.93||11.25|
|HARGREAVES LANS/ADR||$602.86 million||N/A||$318.29 million||$1.34||43.71|
HARGREAVES LANS/ADR has higher revenue and earnings than Harvest Capital Credit. Harvest Capital Credit is trading at a lower price-to-earnings ratio than HARGREAVES LANS/ADR, indicating that it is currently the more affordable of the two stocks.
Harvest Capital Credit pays an annual dividend of $0.96 per share and has a dividend yield of 9.2%. HARGREAVES LANS/ADR pays an annual dividend of $0.49 per share and has a dividend yield of 0.8%. 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. HARGREAVES LANS/ADR pays out 36.6% of its earnings in the form of a dividend.
Risk & Volatility
Harvest Capital Credit has a beta of 0.69, meaning that its share price is 31% less volatile than the S&P 500. Comparatively, HARGREAVES LANS/ADR has a beta of 1.18, meaning that its share price is 18% more volatile than the S&P 500.
This table compares Harvest Capital Credit and HARGREAVES LANS/ADR’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Harvest Capital Credit||19.75%||7.08%||4.34%|
Institutional & Insider Ownership
8.2% of Harvest Capital Credit shares are owned by institutional investors. 13.4% of Harvest Capital Credit shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Harvest Capital Credit Company Profile
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.
HARGREAVES LANS/ADR Company Profile
Hargreaves Lansdown plc provides direct-to-investor investment services for individuals and corporates in the United Kingdom and Poland. Its flagship service is Vantage, a direct-to-investor platform. The company offers stocks and shares individual savings accounts (ISAs), fund and share accounts, self-invested personal pensions (SIPPs), and lifetime ISAs. It also provides pension services, including SIPPs, annuities, drawdown, and mix and match pensions; share dealing services, such as overseas share dealing, initial public offerings and share offers, certificated share dealing, and exchange traded funds and exchange traded commodities/currencies; and fund dealing services. In addition, the company offers personal and business currency services; Junior ISA, SIPP, and investment accounts; and financial advisory services comprising investment management, lump sum investment, pension consolidation, portfolio restructuring, retirement planning, and estate planning services. Hargreaves Lansdown plc was founded in 1981 and is headquartered in Bristol, the United Kingdom.
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