Head-To-Head Comparison: Red Cat (NASDAQ:RCAT) versus CTGX Mining (OTCMKTS:CHCX)

Red Cat (NASDAQ:RCAT) and CTGX Mining (OTCMKTS:CHCX) are both business services companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, dividends, institutional ownership, profitability, valuation, analyst recommendations and risk.

Insider and Institutional Ownership

38.0% of Red Cat shares are owned by institutional investors. 30.5% of Red Cat shares are owned by insiders. Comparatively, 1.6% of CTGX Mining shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Risk and Volatility

Red Cat has a beta of -0.11, meaning that its stock price is 111% less volatile than the S&P 500. Comparatively, CTGX Mining has a beta of 11.8, meaning that its stock price is 1,080% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and target prices for Red Cat and CTGX Mining, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Red Cat	0	0	1	0	3.00
CTGX Mining	0	0	0	0	N/A

Red Cat presently has a consensus price target of $4.00, indicating a potential upside of 81.00%. Given Red Cat’s higher probable upside, research analysts plainly believe Red Cat is more favorable than CTGX Mining.

Profitability

This table compares Red Cat and CTGX Mining’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Red Cat	-206.42%	-52.40%	-47.59%
CTGX Mining	N/A	N/A	N/A

Earnings & Valuation

This table compares Red Cat and CTGX Mining’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Red Cat	$9.91 million	16.56	-$27.09 million	($0.52)	-4.25
CTGX Mining	N/A	N/A	N/A	N/A	N/A

CTGX Mining has lower revenue, but higher earnings than Red Cat.

Summary

Red Cat beats CTGX Mining on 5 of the 9 factors compared between the two stocks.

About Red Cat

Red Cat Holdings, Inc. engages in the provision of various products, services, and solutions to the drone industry. The company operates through two segments: Enterprise and Consumer. It built infrastructure to manages drone fleets and fly, and provide services remotely, navigate confined industrial interior spaces and dangerous military environment. Red Cat Holdings, Inc. is based in San Juan, Puerto Rico.

About CTGX Mining

CTGX Mining, Inc., through its subsidiary, Sackets Harbor Brewing Company, develops, produces, and markets micro brewed beers. The company offers its products under the brand names of War of 1812 Amber Ale, Railroad Red Ale, Thousand Island Pale Ale, 1812 Amber Ale Light, and Harbor Wheat. It also develops complementary products, such Sackets Harbor Coffee and Sackets Harbor Brewing Co. Root Beer. The company was formerly known as Harbor Brewing Co., Inc. and changed its name to CTGX Mining, Inc. in November 2012. CTGX Mining, Inc. is based in San Francisco, California.