Contrasting Heritage Global (NASDAQ:HGBL) & Greenidge Generation (NASDAQ:GREE)

Heritage Global (NASDAQ:HGBL) and Greenidge Generation (NASDAQ:GREE) are both small-cap finance companies, but which is the better business? We will compare the two companies based on the strength of their profitability, risk, institutional ownership, earnings, valuation, dividends and analyst recommendations.

Valuation & Earnings

This table compares Heritage Global and Greenidge Generation”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Heritage Global	$49.89 million	0.92	$5.18 million	$0.09	14.72
Greenidge Generation	$62.12 million	0.35	-$19.78 million	$0.08	17.56

Heritage Global has higher earnings, but lower revenue than Greenidge Generation. Heritage Global is trading at a lower price-to-earnings ratio than Greenidge Generation, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Heritage Global has a beta of 0.56, suggesting that its stock price is 44% less volatile than the S&P 500. Comparatively, Greenidge Generation has a beta of 3.23, suggesting that its stock price is 223% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Heritage Global and Greenidge Generation, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Heritage Global	1	1	1	1	2.50
Greenidge Generation	1	0	0	0	1.00

Heritage Global currently has a consensus price target of $4.00, indicating a potential upside of 201.89%. Given Heritage Global’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Heritage Global is more favorable than Greenidge Generation.

Profitability

This table compares Heritage Global and Greenidge Generation’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Heritage Global	7.33%	5.47%	4.17%
Greenidge Generation	-2.62%	N/A	-2.90%

Institutional and Insider Ownership

33.5% of Heritage Global shares are owned by institutional investors. Comparatively, 8.5% of Greenidge Generation shares are owned by institutional investors. 14.0% of Heritage Global shares are owned by company insiders. Comparatively, 27.8% of Greenidge Generation shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Heritage Global beats Greenidge Generation on 11 of the 15 factors compared between the two stocks.

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.

About Greenidge Generation

Greenidge Generation Holdings Inc. operates as an integrated cryptocurrency datacenter and power generation company. The company owns and operates cryptocurrency datacenter in New York, as well as hosts, powers, and provides technical support and other related services to bitcoin mining equipment owned by customers. It also owns and operates a 106 MW nameplate capacity power generation facility. The company was founded in 1937 and is based in Fairfield, Connecticut.