New Mountain Finance (NASDAQ:NMFC – Get Free Report) and Greenpro Capital (NASDAQ:GRNQ – Get Free Report) are both small-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, dividends, analyst recommendations, earnings, institutional ownership and risk.
Valuation & Earnings
This table compares New Mountain Finance and Greenpro Capital”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| New Mountain Finance | $327.08 million | 1.91 | $16.49 million | ($0.47) | -14.06 |
| Greenpro Capital | $2.07 million | 6.14 | -$2.98 million | ($3.60) | -1.95 |
Risk & Volatility
New Mountain Finance has a beta of 0.6, indicating that its stock price is 40% less volatile than the S&P 500. Comparatively, Greenpro Capital has a beta of 0.9, indicating that its stock price is 10% less volatile than the S&P 500.
Analyst Recommendations
This is a summary of current ratings and price targets for New Mountain Finance and Greenpro Capital, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| New Mountain Finance | 1 | 4 | 0 | 0 | 1.80 |
| Greenpro Capital | 1 | 0 | 0 | 0 | 1.00 |
New Mountain Finance presently has a consensus target price of $7.67, indicating a potential upside of 15.99%. Given New Mountain Finance’s stronger consensus rating and higher probable upside, analysts plainly believe New Mountain Finance is more favorable than Greenpro Capital.
Insider and Institutional Ownership
32.1% of New Mountain Finance shares are owned by institutional investors. Comparatively, 0.9% of Greenpro Capital shares are owned by institutional investors. 14.9% of New Mountain Finance shares are owned by company insiders. Comparatively, 20.0% of Greenpro Capital shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Profitability
This table compares New Mountain Finance and Greenpro Capital’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| New Mountain Finance | -16.78% | 10.94% | 4.58% |
| Greenpro Capital | -169.65% | -22.06% | -18.90% |
Summary
New Mountain Finance beats Greenpro Capital on 9 of the 13 factors compared between the two stocks.
About New Mountain Finance
New Mountain Finance Corporation (Nasdaq: NMFC), a business development company is a private equity / buyouts and loan fund specializes in directly investing and lending to middle market companies in defensive growth industries. The fund prefers investing in buyout and middle market companies. It also makes investments in debt securities at all levels of the capital structure including first and second lien debt, unsecured notes, and mezzanine securities. In some cases, its investments may also include equity interests. It targets energy, engineering and consulting services, specialty chemicals and materials, trading companies and distributors, commercial printing, diversified support services, education services, environmental and facilities services, office services and supplies, media, distributors, health care services, health care facilities, application software, business services, systems software, federal services, distribution and logistics, interactive home entertainment, telecommunication services, hydroelectric power generation, electric power generation by fossil fuels, electric power generation by nuclear fuels, health care technology, and security and alarm services. The fund seeks to invest in United States of America. It seeks to invest between $10 million and $125 million per transaction. The firm invests through both primary originations and open-market secondary purchases. It invests in companies with EBITDA between $10 million and $200 million. The fund seeks a majority stake in its portfolio companies.
About Greenpro Capital
Greenpro Capital Corp. provides financial consulting and corporate advisory services to small and medium-size businesses primarily in Hong Kong, Malaysia, and China. It operates in two segments, Service Business and Real Estate Business. The company offers business consulting and corporate advisory services, including cross-border listing advisory, tax planning, bookkeeping, advisory and transaction, record management, and accounting outsourcing services; and venture capital related education and support services. It is also involved in the acquisition and rental of real estate properties held for investment and sale; and provision of company formation advisory, company secretarial, and financial services. In addition, the company provides corporate advisory services, such as company review, bank loan advisory, and bank products analysis, as well as loan and credit, and insurance brokerage services; and wealth planning, administration, charity, tax and legal, trusteeship and risk management, investment planning and management, and business support services, as well as asset protection and management, consolidation, and performance monitoring services. The company was formerly known as Greenpro, Inc. and changed its name to Greenpro Capital Corp. in May 2015. Greenpro Capital Corp. was incorporated in 2013 and is headquartered in Kuala Lumpur, Malaysia.
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