Noah (NYSE:NOAH) and Fidus Investment (NASDAQ:FDUS) are both small-cap finance companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, earnings, risk, institutional ownership, valuation, analyst recommendations and dividends.

Earnings & Valuation

This table compares Noah and Fidus Investment’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Noah $478.45 million 3.23 $118.00 million $1.94 13.01
Fidus Investment $77.11 million 2.09 $48.47 million $1.44 4.58

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

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Noah and Fidus Investment, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Noah 0 1 1 0 2.50
Fidus Investment 0 2 2 0 2.50

Noah presently has a consensus target price of $53.09, suggesting a potential upside of 110.40%. Fidus Investment has a consensus target price of $13.17, suggesting a potential upside of 99.49%. Given Noah’s higher probable upside, research analysts plainly believe Noah is more favorable than Fidus Investment.

Profitability

This table compares Noah and Fidus Investment’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Noah 25.82% 15.46% 12.33%
Fidus Investment 62.86% 8.39% 4.57%

Institutional and Insider Ownership

50.8% of Noah shares are held by institutional investors. Comparatively, 30.7% of Fidus Investment shares are held by institutional investors. 1.4% of Fidus Investment shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Risk and Volatility

Noah has a beta of 1.78, meaning that its share price is 78% more volatile than the S&P 500. Comparatively, Fidus Investment has a beta of 0.99, meaning that its share price is 1% less volatile than the S&P 500.

Summary

Noah beats Fidus Investment on 10 of the 13 factors compared between the two stocks.

About Noah

Noah Holdings Limited, through its subsidiaries, operates as a wealth and asset management service provider with focus on wealth investment and asset allocation services for high net worth individuals and enterprises in the People's Republic of China. The company operates through three segments: Wealth Management, Asset Management, and Other Financial Service. It offers onshore and offshore fixed income, private equity, secondary market equity, and insurance products; and value-added financial and related services, such as investor education, corporate registration and tax planning, trust, financial leasing, and philanthropy. The company also provides private equity, real estate, secondary market equity, credit, and other investments; and online wealth management, lending, and payment technology services. The company was founded in 2005 and is headquartered in Shanghai, the People's Republic of China.

About Fidus Investment

Fidus Investment Corporation is a business development company specializing in leveraged buyouts, refinancings, change of ownership transactions, recapitalizations, strategic acquisitions, mezzanine, growth capital, business expansion, lower middle market investments, debt investments, subordinated and second lien loans, senior secured and unitranche debt, preferred equity, warrants, subordinated debt, senior subordinated notes, junior secured loans, and unitranche loans. It does not invest in turnarounds or distressed situations. The fund prefers to invest in aerospace and defense, business services, consumer products and services including retail, food, and beverage, healthcare products and services, industrial products and services, information technology services, niche manufacturing, transportation and logistics, and value-added distribution sectors. It seeks to invest in companies based in United States. The fund typically invests between $5 million and $15 million per transaction in companies with annual revenues between $10 million and $150 million and an annual EBITDA between $3 million and $20 million, but it can occasionally invest in larger or smaller companies. It seeks to acquire minority equity stakes and board observation rights in conjunction with its investments.

Receive News & Ratings for Noah Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Noah and related companies with MarketBeat.com's FREE daily email newsletter.