Critical Analysis: Argo Blockchain (NASDAQ:ARBK) and Crescent Capital BDC (NASDAQ:CCAP)

Argo Blockchain (NASDAQ:ARBK) and Crescent Capital BDC (NASDAQ:CCAP) are both small-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, risk, analyst recommendations, earnings, dividends, profitability and institutional ownership.

Insider & Institutional Ownership

2.4% of Argo Blockchain shares are owned by institutional investors. Comparatively, 49.5% of Crescent Capital BDC shares are owned by institutional investors. 1.0% of Crescent Capital BDC shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Argo Blockchain and Crescent Capital BDC’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Argo Blockchain	-92.08%	-4,172.69%	-59.43%
Crescent Capital BDC	47.06%	12.20%	5.57%

Risk and Volatility

Argo Blockchain has a beta of 1.88, meaning that its stock price is 88% more volatile than the S&P 500. Comparatively, Crescent Capital BDC has a beta of 0.81, meaning that its stock price is 19% less volatile than the S&P 500.

Valuation and Earnings

This table compares Argo Blockchain and Crescent Capital BDC”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Argo Blockchain	$60.03 million	1.01	-$35.03 million	($0.72)	-1.32
Crescent Capital BDC	$104.15 million	6.90	$83.84 million	$2.55	7.60

Crescent Capital BDC has higher revenue and earnings than Argo Blockchain. Argo Blockchain is trading at a lower price-to-earnings ratio than Crescent Capital BDC, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings for Argo Blockchain and Crescent Capital BDC, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Argo Blockchain	0	2	0	0	2.00
Crescent Capital BDC	0	1	5	0	2.83

Argo Blockchain currently has a consensus price target of $1.45, indicating a potential upside of 52.62%. Crescent Capital BDC has a consensus price target of $19.17, indicating a potential downside of 1.15%. Given Argo Blockchain’s higher possible upside, research analysts clearly believe Argo Blockchain is more favorable than Crescent Capital BDC.

Summary

Crescent Capital BDC beats Argo Blockchain on 12 of the 14 factors compared between the two stocks.

About Argo Blockchain

Argo Blockchain plc, together with its subsidiaries, engages in the bitcoin and other cryptocurrencies mining business worldwide. It engages in mining purpose-built computers for complex cryptographic algorithms. The company was formerly known as GoSun Blockchain Limited and changed its name to Argo Blockchain plc in December 2017. Argo Blockchain plc was incorporated in 2017 and is based in London, the United Kingdom.

About Crescent Capital BDC

Crescent Capital BDC, Inc. is as a business development company private equity / buyouts and loan fund. It specializes in directly investing. It specializes in middle market. The fund seeks to invest in United States.