Reviewing Five Point (NYSE:FPH) and Grow Capital (OTCMKTS:GRWC)

Grow Capital (OTCMKTS:GRWC) and Five Point (NYSE:FPH) are both small-cap finance companies, but which is the better investment? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, dividends, valuation and analyst recommendations.

Institutional and Insider Ownership

38.1% of Five Point shares are owned by institutional investors. 43.9% of Grow Capital shares are owned by company insiders. Comparatively, 21.5% of Five Point shares are owned by company 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 recent ratings for Grow Capital and Five Point, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Grow Capital	0	0	0	0	0.00
Five Point	0	0	2	0	3.00

Volatility and Risk

Grow Capital has a beta of 25.25, meaning that its stock price is 2,425% more volatile than the S&P 500. Comparatively, Five Point has a beta of 1.51, meaning that its stock price is 51% more volatile than the S&P 500.

Valuation & Earnings

This table compares Grow Capital and Five Point”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Grow Capital	$3.01 million	17.63	-$3.62 million	($0.03)	-11.60
Five Point	$237.93 million	3.81	$68.30 million	$1.30	4.74

Five Point has higher revenue and earnings than Grow Capital. Grow Capital is trading at a lower price-to-earnings ratio than Five Point, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Grow Capital and Five Point’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Grow Capital	-117.42%	N/A	N/A
Five Point	48.56%	4.24%	2.99%

Summary

Five Point beats Grow Capital on 10 of the 13 factors compared between the two stocks.

About Grow Capital

Grow Capital, Inc. operates in the financial technology sector. It provides software, technology, and services to financial services firms and advisors. The company's software suite delivers customized back office compliance, multi-pay commission processing, and new client application submission system, as well as digital engagement marketing services centric to financial services. It also provides software customization, licensing, and subscription service contracts, as well as ongoing customization and maintenance services; and ad hoc services, including web hosting, website development, and other complementary professional services. The company was incorporated in 1999 and is based in Henderson, Nevada.

About Five Point

Five Point Holdings, LLC, through its subsidiary, Five Point Operating Company, LP, owns and develops mixed-use and planned communities in Orange County, Los Angeles County, and San Francisco County. The company operates in four segments: Valencia, San Francisco, Great Park, and Commercial. It sells residential and commercial land sites to homebuilders, commercial developers, and commercial buyers; operates and owns a commercial office, research and development, medical campus, and other properties; and provides development and property management services. The company was formerly known as Newhall Holding Company, LLC and changed its name to Five Point Holdings, LLC in May 2016. Five Point Holdings, LLC was incorporated in 2009 and is headquartered in Irvine, California.