Streamex (NASDAQ:STEX – Get Free Report) and Saratoga Investment (NYSE:SAR – 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 earnings, institutional ownership, profitability, valuation, risk, dividends and analyst recommendations.
Insider & Institutional Ownership
7.2% of Streamex shares are owned by institutional investors. Comparatively, 19.1% of Saratoga Investment shares are owned by institutional investors. 52.7% of Streamex shares are owned by company insiders. Comparatively, 10.6% of Saratoga Investment shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Profitability
This table compares Streamex and Saratoga Investment’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Streamex | N/A | -462.48% | -307.38% |
| Saratoga Investment | -3.35% | 8.66% | 2.78% |
Analyst Recommendations
This is a summary of current recommendations for Streamex and Saratoga Investment, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Streamex | 1 | 1 | 1 | 0 | 2.00 |
| Saratoga Investment | 1 | 4 | 0 | 0 | 1.80 |
Streamex presently has a consensus price target of $4.00, indicating a potential upside of 1,097.60%. Saratoga Investment has a consensus price target of $19.67, indicating a potential upside of 53.53%. Given Streamex’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Streamex is more favorable than Saratoga Investment.
Risk and Volatility
Streamex has a beta of 2.24, indicating that its share price is 124% more volatile than the S&P 500. Comparatively, Saratoga Investment has a beta of 0.62, indicating that its share price is 38% less volatile than the S&P 500.
Valuation and Earnings
This table compares Streamex and Saratoga Investment”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Streamex | $40,000.00 | 972.44 | -$462.77 million | ($9.05) | -0.04 |
| Saratoga Investment | $8.73 million | 22.83 | $36.60 million | ($0.25) | -51.24 |
Saratoga Investment has higher revenue and earnings than Streamex. Saratoga Investment is trading at a lower price-to-earnings ratio than Streamex, indicating that it is currently the more affordable of the two stocks.
Summary
Streamex beats Saratoga Investment on 8 of the 14 factors compared between the two stocks.
About Streamex
Streamex Corp. is a financial technology company focused on blockchain-based financial infrastructure and the tokenization of real-world assets. Its business is centered on developing digital platforms designed to connect traditional financial products with blockchain networks.
The company’s activities include creating and supporting digital assets, blockchain applications and tokenized investment products. Streamex has described its work as serving institutional and other market participants seeking greater efficiency, transparency and accessibility in digital-asset markets.
Publicly available information about Streamex’s operating history, geographic reach, product portfolio and leadership is limited. The company is headquartered in the United States and trades on the Nasdaq Capital Market under the symbol STEX.
About Saratoga Investment
Saratoga Investment Corp. is a business development company specializing in leveraged and management buyouts, acquisition financings, growth financings, recapitalization, debt refinancing, and transitional financing transactions at the lower end of middle market companies. It structures its investments as debt and equity by investing through first and second lien loans, mezzanine debt, co-investments, select high yield bonds, senior secured bonds, unsecured bonds, and preferred and common equity. The firm prefers to invest in aerospace, automotive aftermarket and services, business products and services, consumer products and services, education, environmental services, industrial services, financial services, food and beverage, healthcare products and services, logistics, distribution, manufacturing, restaurants services, food services, software services, technology services, specialty chemical, media and telecommunications. It seeks to invest in the United States. The firm primarily invests $5 million to $50 million in companies having EBITDA of $2 million or greater and revenues of $8 million to $250 million. The firm prefer to take a majority stake. It invests through direct lending as well as participation in loan syndicates. The firm was formerly known as GSC Investment Corp. Saratoga Investment Corp. was formed on 2007 and is based in New York, New York with an additional office in Florham Park, New Jersey.
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