Financial Analysis: ETRACS Gold Shares Covered Call ETN (NASDAQ:GLDI) versus Ridgepost Capital (NYSE:RPC)

ETRACS Gold Shares Covered Call ETN (NASDAQ:GLDI) and Ridgepost Capital (NYSE:RPC) are both small-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, risk, profitability, valuation, analyst recommendations, dividends and institutional ownership.

Risk & Volatility

ETRACS Gold Shares Covered Call ETN has a beta of 0.11, suggesting that its share price is 89% less volatile than the S&P 500. Comparatively, Ridgepost Capital has a beta of 0.88, suggesting that its share price is 12% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations for ETRACS Gold Shares Covered Call ETN and Ridgepost Capital, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ETRACS Gold Shares Covered Call ETN	0	0	0	0	0.00
Ridgepost Capital	0	2	2	0	2.50

Ridgepost Capital has a consensus target price of $12.00, suggesting a potential upside of 47.15%. Given Ridgepost Capital’s stronger consensus rating and higher possible upside, analysts plainly believe Ridgepost Capital is more favorable than ETRACS Gold Shares Covered Call ETN.

Dividends

ETRACS Gold Shares Covered Call ETN pays an annual dividend of $1.60 per share and has a dividend yield of 1.0%. Ridgepost Capital pays an annual dividend of $0.16 per share and has a dividend yield of 2.0%. ETRACS Gold Shares Covered Call ETN pays out 205.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Ridgepost Capital pays out 72.7% of its earnings in the form of a dividend. Ridgepost Capital is clearly the better dividend stock, given its higher yield and lower payout ratio.

Insider and Institutional Ownership

37.0% of ETRACS Gold Shares Covered Call ETN shares are held by institutional investors. Comparatively, 48.1% of Ridgepost Capital shares are held by institutional investors. 11.5% of Ridgepost Capital shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation & Earnings

This table compares ETRACS Gold Shares Covered Call ETN and Ridgepost Capital”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ETRACS Gold Shares Covered Call ETN	N/A	N/A	N/A	$0.78	198.33
Ridgepost Capital	$297.35 million	3.00	$19.50 million	$0.22	37.07

Ridgepost Capital has higher revenue and earnings than ETRACS Gold Shares Covered Call ETN. Ridgepost Capital is trading at a lower price-to-earnings ratio than ETRACS Gold Shares Covered Call ETN, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares ETRACS Gold Shares Covered Call ETN and Ridgepost Capital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ETRACS Gold Shares Covered Call ETN	N/A	N/A	N/A
Ridgepost Capital	7.99%	24.58%	10.56%

Summary

Ridgepost Capital beats ETRACS Gold Shares Covered Call ETN on 12 of the 14 factors compared between the two stocks.

About ETRACS Gold Shares Covered Call ETN

luxury british cocoa grower and chocolatier, hotel chocolat, was founded in 2004 to make exciting chocolate with three guiding principles – authenticity, originality and ethics – which remain central to the brand’s success today. with its rabot estate cocoa plantation in saint lucia, a chocolate manufacturing facility in cambridgeshire and stores across the uk and internationally, hotel chocolat occupies a unique space – being able to link all aspects of chocolate from the tree to the consumer. they also have concessions in john lewis stores nationwide and in david jones, australia. in 2011 hotel chocolat opened a boutique hotel in the grounds of rabot estate on saint lucia, which is also home to boucan restaurant and its pioneering menu of ‘cacao cuisine’. in 2013 hotel chocolat opened two cocoa cuisine restaurants inspired by boucan – rabot 1745 in london’s borough market and roast+conch in leeds. both restaurants reconnect the world of cocoa growing with the luxury of eating it. rec

About Ridgepost Capital

P10, Inc., together with its subsidiaries, operates as a multi-asset class private market solutions provider in the alternative asset management industry in the United States. The company offers private equity, venture capital, private credit, impact investing, and private credit services, as well as primary fund of funds, secondary investment, and direct and co-investments services. It also provides tax credit transaction and consulting services. The company was founded in 1992 and is headquartered in Dallas, Texas.