Runway Growth Finance (NASDAQ:RWAY – Get Free Report) and BitFuFu (NASDAQ:FUFU – Get Free Report) are both small-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, valuation, analyst recommendations and dividends.
Analyst Recommendations
This is a breakdown of recent ratings for Runway Growth Finance and BitFuFu, as provided by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Runway Growth Finance | 0 | 5 | 3 | 0 | 2.38 |
BitFuFu | 0 | 0 | 1 | 0 | 3.00 |
Runway Growth Finance currently has a consensus price target of $12.04, indicating a potential upside of 5.81%. BitFuFu has a consensus price target of $7.00, indicating a potential upside of 39.72%. Given BitFuFu’s stronger consensus rating and higher possible upside, analysts plainly believe BitFuFu is more favorable than Runway Growth Finance.
Profitability
Net Margins | Return on Equity | Return on Assets | |
Runway Growth Finance | 27.05% | 12.91% | 6.33% |
BitFuFu | 8.17% | 40.15% | 13.55% |
Valuation & Earnings
This table compares Runway Growth Finance and BitFuFu”s revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Runway Growth Finance | $53.67 million | 7.92 | $44.34 million | $1.04 | 10.94 |
BitFuFu | $452.74 million | 1.80 | $10.49 million | N/A | N/A |
Runway Growth Finance has higher earnings, but lower revenue than BitFuFu.
Insider and Institutional Ownership
64.6% of Runway Growth Finance shares are held by institutional investors. Comparatively, 37.3% of BitFuFu shares are held by institutional investors. 1.7% of Runway Growth Finance shares are held by insiders. Comparatively, 35.0% of BitFuFu shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Risk and Volatility
Runway Growth Finance has a beta of 0.59, meaning that its stock price is 41% less volatile than the S&P 500. Comparatively, BitFuFu has a beta of 0.24, meaning that its stock price is 76% less volatile than the S&P 500.
About Runway Growth Finance
Runway Growth Finance Corp. is a business development company specializing investments in senior-secured loans to late stage and growth companies. It prefers to make investments in companies engaged in the technology, life sciences, healthcare and information services, business services and select consumer services and products sectors. It prefers to investments in companies engaged in electronic equipment and instruments, systems software, hardware, storage and peripherals and specialized consumer services, application software, healthcare technology, internet software and services, data processing and outsourced services, internet retail, human resources and employment services, biotechnology, healthcare equipment and education services. It invests in senior secured loans between $10 million and $75 million.
About BitFuFu
BitFuFu Inc. provides digital asset mining and cloud-mining services in Singapore. It also offers miner rental, and miner hosting and sales services to institutional customers and individual digital asset enthusiasts. The company is based in Singapore, Singapore.
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