Allied Minds (OTCMKTS:ALLWF) and Portman Ridge Finance (NASDAQ:PTMN) are both small-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, risk, analyst recommendations, profitability, valuation and dividends.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Allied Minds and Portman Ridge Finance, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Allied Minds 0 0 1 0 3.00
Portman Ridge Finance 0 0 0 0 N/A

Volatility & Risk

Allied Minds has a beta of 0.38, suggesting that its stock price is 62% less volatile than the S&P 500. Comparatively, Portman Ridge Finance has a beta of 0.74, suggesting that its stock price is 26% less volatile than the S&P 500.

Institutional & Insider Ownership

23.2% of Portman Ridge Finance shares are owned by institutional investors. 6.3% of Portman Ridge Finance shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Dividends

Portman Ridge Finance pays an annual dividend of $0.24 per share and has a dividend yield of 11.1%. Allied Minds does not pay a dividend. Portman Ridge Finance pays out 88.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

This table compares Allied Minds and Portman Ridge Finance’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Allied Minds N/A N/A N/A
Portman Ridge Finance -86.64% 2.41% 1.27%

Earnings and Valuation

This table compares Allied Minds and Portman Ridge Finance’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Allied Minds N/A N/A N/A N/A N/A
Portman Ridge Finance $27.09 million 2.99 -$9.57 million $0.27 8.04

Allied Minds has higher earnings, but lower revenue than Portman Ridge Finance.

Summary

Portman Ridge Finance beats Allied Minds on 7 of the 10 factors compared between the two stocks.

About Allied Minds

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.

About Portman Ridge Finance

Portman Ridge Finance Corp. is a private equity fund and non-diversified closed-end investment company that invests in middle market companies generating consistent cash flows located in North America. It targets companies operating across a broad range of sectors such as aerospace and defense, automotive, beverage, food and tobacco, broadcasting and entertainment, buildings and real estate, personal and cargo transport, chemicals, plastics and rubber, containers, packaging and glass, diversified or conglomerate service, ecological, electronics, finance, and healthcare. The company was founded on August 8, 2006 and is headquartered in New York, NY.

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