Portman Ridge Finance (PTMN) vs. Rand Capital (RAND) Financial Contrast

Portman Ridge Finance (NASDAQ:PTMN) and Rand Capital (NASDAQ:RAND) are both small-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, dividends, risk, institutional ownership, earnings, profitability and analyst recommendations.

Analyst Recommendations

This is a breakdown of current recommendations for Portman Ridge Finance and Rand Capital, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Portman Ridge Finance 0 0 0 0 N/A
Rand Capital 0 0 0 0 N/A

Insider and Institutional Ownership

27.6% of Portman Ridge Finance shares are held by institutional investors. Comparatively, 16.7% of Rand Capital shares are held by institutional investors. 8.1% of Portman Ridge Finance shares are held by company insiders. Comparatively, 12.3% of Rand Capital shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Dividends

Portman Ridge Finance pays an annual dividend of $0.40 per share and has a dividend yield of 13.3%. Rand Capital does not pay a dividend. Portman Ridge Finance pays out 148.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Earnings & Valuation

This table compares Portman Ridge Finance and Rand Capital’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Portman Ridge Finance $27.09 million 4.15 -$9.57 million $0.27 11.15
Rand Capital $2.11 million 8.99 -$390,000.00 N/A N/A

Rand Capital has lower revenue, but higher earnings than Portman Ridge Finance.

Profitability

This table compares Portman Ridge Finance and Rand Capital’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Portman Ridge Finance -35.34% 5.81% 3.52%
Rand Capital -18.65% -0.21% -0.17%

Risk & Volatility

Portman Ridge Finance has a beta of 0.97, meaning that its stock price is 3% less volatile than the S&P 500. Comparatively, Rand Capital has a beta of -0.01, meaning that its stock price is 101% less volatile than the S&P 500.

Summary

Portman Ridge Finance beats Rand Capital on 6 of the 11 factors compared between the two stocks.

About Portman Ridge Finance

There is no company description available for Portman Ridge Finance Corp.

About Rand Capital

Rand Capital Corporation is a business development company specializing in venture capital and private equity investments. The firm prefers to make investments through equity or debt instruments in early venture, expansion stage, and in small to medium-sized privately held companies. It generally lends to more mature companies. The firm does not prefer to invest in real estate sector. It invests in companies that are engaged in the exploitation of new or unique products, technologies, or services. The firm invests in healthcare, consumer products, manufacturing, software, and professional services. It seeks to invest in companies based in the Western and Upstate New York region and its surrounding states with focus on Buffalo and Niagara region. The firm may invest in region within three to five hour drives from Western New York including Canada. It typically invests between $0.5 million and $1.5 million and the total investment in rounds is between $1 million and $5 million. The firm seeks to invest up to maximum of $3 million total per company as part of follow-on investments. It invest in startups and companies having annual revenue up to $10 million. The firm seeks to be a lead investor in companies within its geographical area and participates in syndicate/co-invest with other investors outside it. It prefers to invest in businesses that are unique or possess proprietary right. The firm prefers to be a minority investor and seeks to take a Board seat in its portfolio companies. It typically holds its investments for a period of five to seven years. Rand Capital Corporation was founded in 1969 and is based in Buffalo, New York.

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