ETRACS Gold Shares Covered Call ETN (NASDAQ:GLDI) vs. Ridgepost Capital (NYSE:RPC) Financial Survey

Ridgepost Capital (NYSE:RPC) and ETRACS Gold Shares Covered Call ETN (NASDAQ:GLDI) are both small-cap financial services companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, earnings, dividends, profitability, risk, institutional ownership and analyst recommendations.

Analyst Ratings

This is a breakdown of current ratings and price targets for Ridgepost Capital and ETRACS Gold Shares Covered Call ETN, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ridgepost Capital	0	2	2	0	2.50
ETRACS Gold Shares Covered Call ETN	0	0	0	0	0.00

Ridgepost Capital presently has a consensus target price of $12.00, indicating a potential upside of 47.15%. Given Ridgepost Capital’s stronger consensus rating and higher probable upside, analysts clearly believe Ridgepost Capital is more favorable than ETRACS Gold Shares Covered Call ETN.

Risk & Volatility

Ridgepost Capital has a beta of 0.88, suggesting that its share price is 12% less volatile than the S&P 500. Comparatively, ETRACS Gold Shares Covered Call ETN has a beta of 0.11, suggesting that its share price is 89% less volatile than the S&P 500.

Profitability

This table compares Ridgepost Capital and ETRACS Gold Shares Covered Call ETN’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ridgepost Capital	7.99%	24.58%	10.56%
ETRACS Gold Shares Covered Call ETN	N/A	N/A	N/A

Valuation & Earnings

This table compares Ridgepost Capital and ETRACS Gold Shares Covered Call ETN”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ridgepost Capital	$297.35 million	3.00	$19.50 million	$0.22	37.07
ETRACS Gold Shares Covered Call ETN	N/A	N/A	N/A	$0.78	198.33

Ridgepost Capital has higher revenue and earnings than ETRACS Gold Shares Covered Call ETN. Ridgepost Capital is trading at a lower price-to-earnings ratio than ETRACS Gold Shares Covered Call ETN, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

48.1% of Ridgepost Capital shares are owned by institutional investors. Comparatively, 37.0% of ETRACS Gold Shares Covered Call ETN shares are owned by institutional investors. 11.5% of Ridgepost Capital 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

Ridgepost Capital pays an annual dividend of $0.16 per share and has a dividend yield of 2.0%. ETRACS Gold Shares Covered Call ETN pays an annual dividend of $1.60 per share and has a dividend yield of 1.0%. Ridgepost Capital pays out 72.7% of its earnings in the form of a dividend. ETRACS Gold Shares Covered Call ETN pays out 205.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Ridgepost Capital is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Ridgepost Capital beats ETRACS Gold Shares Covered Call ETN on 12 of the 14 factors compared between the two stocks.

About Ridgepost Capital

P10, Inc., together with its subsidiaries, operates as a multi-asset class private market solutions provider in the alternative asset management industry in the United States. The company offers private equity, venture capital, private credit, impact investing, and private credit services, as well as primary fund of funds, secondary investment, and direct and co-investments services. It also provides tax credit transaction and consulting services. The company was founded in 1992 and is headquartered in Dallas, Texas.

About ETRACS Gold Shares Covered Call ETN

luxury british cocoa grower and chocolatier, hotel chocolat, was founded in 2004 to make exciting chocolate with three guiding principles – authenticity, originality and ethics – which remain central to the brand’s success today. with its rabot estate cocoa plantation in saint lucia, a chocolate manufacturing facility in cambridgeshire and stores across the uk and internationally, hotel chocolat occupies a unique space – being able to link all aspects of chocolate from the tree to the consumer. they also have concessions in john lewis stores nationwide and in david jones, australia. in 2011 hotel chocolat opened a boutique hotel in the grounds of rabot estate on saint lucia, which is also home to boucan restaurant and its pioneering menu of ‘cacao cuisine’. in 2013 hotel chocolat opened two cocoa cuisine restaurants inspired by boucan – rabot 1745 in london’s borough market and roast+conch in leeds. both restaurants reconnect the world of cocoa growing with the luxury of eating it. rec