Critical Comparison: RocketFuel Blockchain (OTCMKTS:RKFL) vs. Sprott (NYSE:SII)

Sprott (NYSE:SII) and RocketFuel Blockchain (OTCMKTS:RKFL) are both small-cap finance companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, profitability, earnings, risk, analyst recommendations, institutional ownership and dividends.

Analyst Ratings

This is a summary of current ratings and target prices for Sprott and RocketFuel Blockchain, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sprott	0	0	0	0	N/A
RocketFuel Blockchain	0	0	0	0	N/A

Valuation & Earnings

This table compares Sprott and RocketFuel Blockchain’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sprott	$169.02 million	6.13	$41.80 million	$1.65	24.30
RocketFuel Blockchain	$200,000.00	5.38	-$3.78 million	($0.12)	-0.27

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

Insider and Institutional Ownership

28.3% of Sprott shares are owned by institutional investors. Comparatively, 7.2% of RocketFuel Blockchain shares are owned by institutional investors. 18.3% of Sprott shares are owned by company insiders. Comparatively, 28.7% of RocketFuel Blockchain shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Volatility and Risk

Sprott has a beta of 1.14, suggesting that its stock price is 14% more volatile than the S&P 500. Comparatively, RocketFuel Blockchain has a beta of 1.05, suggesting that its stock price is 5% more volatile than the S&P 500.

Profitability

This table compares Sprott and RocketFuel Blockchain’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sprott	27.34%	14.19%	10.98%
RocketFuel Blockchain	N/A	N/A	N/A

Summary

Sprott beats RocketFuel Blockchain on 10 of the 11 factors compared between the two stocks.

About Sprott

Sprott Inc. is a publicly owned asset management holding company. Through its subsidiaries, the firm provides asset management, portfolio management, wealth management, fund management, and administrative and consulting services to its clients. It offers mutual funds, hedge funds, and offshore funds, along with managed accounts. Further, the firm also provides broker-dealer activities. Sprott Inc. was formed on February 13, 2008 and is based in Toronto, Canada.

About RocketFuel Blockchain

RocketFuel Blockchain, Inc. provides payment and check-out systems for shoppers on e-commerce sites using cryptocurrencies, bitcoin, and direct bank transfers. It also offers payout solutions, cross-border B2B transfer solutions, and other solutions, as well as invoicing and crypto payments services. The company has a strategic partnership with ACI Worldwide, Inc. to offer the cryptocurrency payment solution available to customers through ACI portals. RocketFuel Blockchain, Inc. was incorporated in 2018 and is headquartered in San Francisco, California.