Analyzing Viper Networks (OTCMKTS:VPER) & Heritage Global (NASDAQ:HGBL)

Heritage Global (NASDAQ:HGBL) and Viper Networks (OTCMKTS:VPER) are both small-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, earnings, dividends, risk, institutional ownership, profitability and valuation.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Heritage Global and Viper Networks, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Heritage Global	0	0	2	0	3.00
Viper Networks	0	0	0	0	N/A

Heritage Global presently has a consensus target price of $5.25, indicating a potential upside of 101.15%. Given Heritage Global’s higher possible upside, analysts plainly believe Heritage Global is more favorable than Viper Networks.

Institutional and Insider Ownership

33.5% of Heritage Global shares are owned by institutional investors. 12.0% of Heritage Global 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 Heritage Global and Viper Networks’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Heritage Global	20.60%	23.50%	16.22%
Viper Networks	N/A	N/A	N/A

Volatility and Risk

Heritage Global has a beta of 1.29, indicating that its stock price is 29% more volatile than the S&P 500. Comparatively, Viper Networks has a beta of -0.97, indicating that its stock price is 197% less volatile than the S&P 500.

Earnings & Valuation

This table compares Heritage Global and Viper Networks’ top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Heritage Global	$60.54 million	1.60	$12.48 million	$0.33	7.91
Viper Networks	N/A	N/A	N/A	N/A	N/A

Heritage Global has higher revenue and earnings than Viper Networks.

Summary

Heritage Global beats Viper Networks on 9 of the 9 factors compared between the two stocks.

About Heritage Global

Heritage Global Inc., together with its subsidiaries, operates as an asset services company with focus on financial and industrial asset transactions. The company operates in three segments: Auction and Liquidation, Refurbishment & Resale, and Brokerage. It provides a suite of market making, acquisitions, refurbishment, dispositions, valuations, and secured lending services. The company focuses on identifying, valuing, acquiring, and monetizing underlying tangible assets. It acts as an adviser, as well as a principal, acquiring, or brokering manufacturing facilities; surplus industrial machinery and equipment; industrial inventories; and charged-off receivable portfolios. The company was formerly known as Counsel RB Capital Inc. and changed its name to Heritage Global, Inc. in August 2013. Heritage Global, Inc. was founded in 1937 and is headquartered in San Diego, California.

About Viper Networks

Viper Networks, Inc. manufactures and distributes LED lighting products. The company provides CyberGrab; Vnet, a communication application; Viper unified communications platform for carriers and providers; VRoom; parking lot lightings system; and solar power and telecom systems, as well as intelligent lighting solutions with camera, sensor, and wireless technologies. Its products are used in street, roadway, security, parking lot, and billboard lighting. Viper Networks, Inc. was incorporated in 2000 and is based in Troy, Michigan.