Arlington Asset Investment (NYSE:AI) and Allied Minds (OTCMKTS:ALLWF) are both small-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, earnings, risk, valuation, analyst recommendations, profitability and institutional ownership.

Profitability

This table compares Arlington Asset Investment and Allied Minds’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Arlington Asset Investment -27.63% 15.96% 1.08%
Allied Minds N/A N/A N/A

Valuation & Earnings

This table compares Arlington Asset Investment and Allied Minds’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Arlington Asset Investment $130.95 million 1.52 -$91.79 million $2.06 2.64
Allied Minds N/A N/A N/A N/A N/A

Allied Minds has lower revenue, but higher earnings than Arlington Asset Investment.

Dividends

Arlington Asset Investment pays an annual dividend of $0.90 per share and has a dividend yield of 16.6%. Allied Minds does not pay a dividend. Arlington Asset Investment pays out 43.7% of its earnings in the form of a dividend.

Volatility & Risk

Arlington Asset Investment has a beta of 1.01, indicating that its stock price is 1% more volatile than the S&P 500. Comparatively, Allied Minds has a beta of 0.36, indicating that its stock price is 64% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Arlington Asset Investment and Allied Minds, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Arlington Asset Investment 0 1 1 0 2.50
Allied Minds 0 0 1 0 3.00

Arlington Asset Investment currently has a consensus target price of $14.00, indicating a potential upside of 157.83%. Given Arlington Asset Investment’s higher possible upside, equities research analysts plainly believe Arlington Asset Investment is more favorable than Allied Minds.

Institutional and Insider Ownership

45.1% of Arlington Asset Investment shares are owned by institutional investors. 2.2% of Arlington Asset Investment shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Arlington Asset Investment beats Allied Minds on 8 of the 11 factors compared between the two stocks.

Arlington Asset Investment Company Profile

Arlington Asset Investment Corp. (NYSE: AI) is a principal investment firm that currently invests primarily in mortgage-related and other assets. The Company is headquartered in the Washington, D.C. metropolitan area. For more information, please visit www.arlingtonasset.com.

Allied Minds Company Profile

Allied Minds plc is a private equity and venture capital firm specializing in pre-seed, seed, start-up, and early stage technology investments. The firm prefers to invest across all products, services, and industries with a focus on the life science and technology sector including medical devices, diagnostics, biopharmaceuticals, big data, cyber security, communications, semiconductors, and food safety. It primarily invests in companies based in the United States, but depending on opportunities this could be expanded to a global network of partners and investments. The firm typically invests between $0.25 million and $1 million in seed investments and from $5 million to $10 million in Series A investments. The firm focuses on commercializing technologies from leading United States Universities and national labs. It seeks to take majority equity positions in its portfolio companies. The firm partners with universities to fund licensing deals and corporate spin-outs. It prefers to continue to invest alongside a syndicate for larger Series A and follow-on rounds. Allied Minds plc is based in Boston, Massachusetts with additional offices in London, United Kingdom; Los Angeles, California; Seattle, Washington; New York; New York and Washington, DC.

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