Harvest Capital Credit (NASDAQ:HCAP) and Golden Bull (NASDAQ:DNJR) are both small-cap finance companies, but which is the better business? We will compare the two companies based on the strength of their earnings, analyst recommendations, profitability, risk, valuation, institutional ownership and dividends.

Earnings & Valuation

This table compares Harvest Capital Credit and Golden Bull’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Harvest Capital Credit $18.70 million 3.57 $1.63 million $1.28 8.14
Golden Bull $6.95 million 12.65 -$940,000.00 N/A N/A

Harvest Capital Credit has higher revenue and earnings than Golden Bull.

Insider and Institutional Ownership

9.6% of Harvest Capital Credit shares are held by institutional investors. Comparatively, 0.1% of Golden Bull shares are held by institutional investors. 9.3% of Harvest Capital Credit shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Dividends

Harvest Capital Credit pays an annual dividend of $1.14 per share and has a dividend yield of 10.9%. Golden Bull does not pay a dividend. Harvest Capital Credit pays out 89.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Recommendations

This is a summary of current recommendations and price targets for Harvest Capital Credit and Golden Bull, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Harvest Capital Credit 0 2 0 0 2.00
Golden Bull 0 0 0 0 N/A

Harvest Capital Credit currently has a consensus price target of $12.00, indicating a potential upside of 15.12%. Given Harvest Capital Credit’s higher probable upside, research analysts clearly believe Harvest Capital Credit is more favorable than Golden Bull.

Profitability

This table compares Harvest Capital Credit and Golden Bull’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Harvest Capital Credit 30.83% 7.86% 4.88%
Golden Bull N/A N/A N/A

Summary

Harvest Capital Credit beats Golden Bull on 9 of the 11 factors compared between the two stocks.

About Harvest Capital Credit

Harvest Capital Credit Corporation is a business development company providing structured credit to small businesses and specializing in leveraged buyouts, add-on acquisitions, recapitalizations, growth financings and debt refinancing investments. It prefers to invest in North America-based companies. The firm invest in multiple layers of a company's capital structure, from senior secured debt to subordinated debt and minority equity capital. The firm typically invests in companies with target equity size of $250k to $1 million and target loan size of $2 million to $15 million, having revenue between $10 million and $100 million with at least $1.5 million of annual EBITDA. Harvest Capital Credit Corporation was founded in 2012 and is based in New York, New York.

About Golden Bull

Golden Bull Limited operates as an online finance marketplace company in the People's Republic of China. The company's online marketplace connects individual lenders with individual and small business borrowers for short-term loans. It also provides investment and financing consultancy, and technical services. The company was founded in 2015 and is headquartered in Shanghai, the People's Republic of China.

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