Financial Review: Jupiter Fund Management (OTCMKTS:JFHHF) vs. Portman Ridge Finance (NASDAQ:PTMN)

Portman Ridge Finance (NASDAQ:PTMN) and Jupiter Fund Management (OTCMKTS:JFHHF) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their valuation, dividends, analyst recommendations, risk, earnings, profitability and institutional ownership.

Valuation and Earnings

This table compares Portman Ridge Finance and Jupiter Fund Management”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Portman Ridge Finance	-$2.85 million	-57.22	-$5.93 million	($0.93)	-13.27
Jupiter Fund Management	N/A	N/A	N/A	N/A	N/A

Jupiter Fund Management has higher revenue and earnings than Portman Ridge Finance.

Insider and Institutional Ownership

30.1% of Portman Ridge Finance shares are owned by institutional investors. 2.1% of Portman Ridge Finance shares are owned 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.

Analyst Ratings

This is a breakdown of current ratings for Portman Ridge Finance and Jupiter Fund Management, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Portman Ridge Finance	0	1	0	0	2.00
Jupiter Fund Management	1	2	0	0	1.67

Portman Ridge Finance currently has a consensus price target of $14.00, suggesting a potential upside of 13.45%. Given Portman Ridge Finance’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Portman Ridge Finance is more favorable than Jupiter Fund Management.

Profitability

This table compares Portman Ridge Finance and Jupiter Fund Management’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Portman Ridge Finance	-15.92%	11.49%	4.54%
Jupiter Fund Management	N/A	N/A	N/A

Risk and Volatility

Portman Ridge Finance has a beta of 0.6, indicating that its stock price is 40% less volatile than the S&P 500. Comparatively, Jupiter Fund Management has a beta of 0.41, indicating that its stock price is 59% less volatile than the S&P 500.

Summary

Portman Ridge Finance beats Jupiter Fund Management on 7 of the 9 factors compared between the two stocks.

About Portman Ridge Finance

Portman Ridge Finance Corporation is a business development company specializing in investments in unitranche loans (including last out), first lien loans, second lien loans, subordinated debt, equity co-investment, mezzanine, buyout in middle market companies. It also makes acquisitions in businesses complementary to the firm's business. It primarily invests in healthcare, cargo transport, manufacturing, industrial & environmental services, logistics & distribution, media & telecommunications, real estate, education, automotive, agriculture, aerospace/defense, packaging, electronics, finance, non-durable consumer, consumer products, business services, utilities, insurance, and food and beverage sectors. The fund typically invests $1 million to $20 million in its portfolio companies. It provides senior secured term loans from $2 million to $20 million maturing in five to seven years; second lien term loans from $5 million to $15 million maturing in six to eight years; senior unsecured loans $5 million to $23 million maturing in six to eight years; mezzanine loans from $5 million to $15 million maturing in seven to ten years; and equity investments from $1 to $5 million. The fund targets the companies with EBITDA between $5 million and $25 million. While investing in debt securities, it invests in those middle market firms with EBITDA between $10 million and $50 million and/or total debt between $25 million and $150 million. It invests in minority, and majority or control equity positions alongside its private equity sponsor partners.

About Jupiter Fund Management

Jupiter Fund Management Plc is a publicly owned investment manager. The firm manages mutual funds, hedge funds, client focused portfolios, and multi-manager products for its clients. It invests in the public equity markets across U.K., Europe and global emerging markets. The firm also invests in fixed income markets, fund of funds products, hedge funds, and absolute return funds. Jupiter Fund Management Plc was founded in 1985 and is based in London, United Kingdom.