Analyzing HA Sustainable Infrastructure Capital (NYSE:HASI) & Heritage Global (NASDAQ:HGBL)

HA Sustainable Infrastructure Capital (NYSE:HASI) and Heritage Global (NASDAQ:HGBL) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, risk, institutional ownership, analyst recommendations, earnings, profitability and dividends.

Insider & Institutional Ownership

96.1% of HA Sustainable Infrastructure Capital shares are held by institutional investors. Comparatively, 33.5% of Heritage Global shares are held by institutional investors. 2.2% of HA Sustainable Infrastructure Capital shares are held by company insiders. Comparatively, 14.0% of Heritage Global shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for HA Sustainable Infrastructure Capital and Heritage Global, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
HA Sustainable Infrastructure Capital	0	2	10	0	2.83
Heritage Global	1	1	1	1	2.50

HA Sustainable Infrastructure Capital presently has a consensus price target of $46.60, suggesting a potential upside of 13.20%. Heritage Global has a consensus price target of $4.50, suggesting a potential upside of 278.15%. Given Heritage Global’s higher probable upside, analysts plainly believe Heritage Global is more favorable than HA Sustainable Infrastructure Capital.

Earnings and Valuation

This table compares HA Sustainable Infrastructure Capital and Heritage Global”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
HA Sustainable Infrastructure Capital	$400.50 million	13.20	$184.55 million	$0.35	117.62
Heritage Global	$50.98 million	0.81	$3.59 million	$0.10	11.90

HA Sustainable Infrastructure Capital has higher revenue and earnings than Heritage Global. Heritage Global is trading at a lower price-to-earnings ratio than HA Sustainable Infrastructure Capital, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

HA Sustainable Infrastructure Capital has a beta of 1.47, meaning that its share price is 47% more volatile than the S&P 500. Comparatively, Heritage Global has a beta of 0.46, meaning that its share price is 54% less volatile than the S&P 500.

Profitability

This table compares HA Sustainable Infrastructure Capital and Heritage Global’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
HA Sustainable Infrastructure Capital	13.08%	12.80%	4.16%
Heritage Global	6.45%	4.86%	3.73%

Summary

HA Sustainable Infrastructure Capital beats Heritage Global on 12 of the 15 factors compared between the two stocks.

About HA Sustainable Infrastructure Capital

HA Sustainable Infrastructure Capital, Inc., through its subsidiaries, engages in the investment of energy efficiency, renewable energy, and sustainable infrastructure markets in the United States. The company’s portfolio includes equity investments, commercial and government receivables, real estate, and debt securities. It invests in climate solutions, including Behind-the-Meter, which distributes energy projects that reduce energy usage or cost through heating, ventilation, and air conditioning systems, as well as lighting, energy controls, roofs, windows, building shells, and/or combined heat and power systems; Grid-Connected, a renewable energy projects that deploy cleaner energy sources, such as solar, solar-plus-storage, and wind to generate power production; and Fuels, Transport, and Nature, a range of real assets spanning high-emitting economic sectors other than the power grid such as transportation and fuels comprising renewable natural gas plants, transportation fleet enhancements, ecological restoration, and other projects. HA Sustainable Infrastructure Capital, Inc. was founded in 1981 and is headquartered in Annapolis, Maryland.

About Heritage Global

Heritage Global Inc., together with its subsidiaries, operates as an asset services company with focus on financial and industrial asset transactions. The company operates in three segments: Auction and Liquidation, Refurbishment & Resale, and Brokerage. It provides a suite of market making, acquisitions, refurbishment, dispositions, valuations, and secured lending services. The company focuses on identifying, valuing, acquiring, and monetizing underlying tangible assets. It acts as an adviser, as well as a principal, acquiring, or brokering manufacturing facilities; surplus industrial machinery and equipment; industrial inventories; and charged-off receivable portfolios. The company was formerly known as Counsel RB Capital Inc. and changed its name to Heritage Global, Inc. in August 2013. Heritage Global, Inc. was founded in 1937 and is headquartered in San Diego, California.