Saratoga Investment (NYSE:SAR – Get Free Report) and Streamex (NASDAQ:STEX – Get Free Report) are both small-cap finance companies, but which is the better business? We will compare the two companies based on the strength of their dividends, profitability, valuation, institutional ownership, risk, earnings and analyst recommendations.
Analyst Recommendations
This is a summary of recent ratings and recommmendations for Saratoga Investment and Streamex, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Saratoga Investment | 1 | 4 | 0 | 0 | 1.80 |
| Streamex | 1 | 1 | 1 | 0 | 2.00 |
Saratoga Investment currently has a consensus target price of $19.67, suggesting a potential upside of 44.83%. Streamex has a consensus target price of $4.00, suggesting a potential upside of 866.65%. Given Streamex’s stronger consensus rating and higher probable upside, analysts plainly believe Streamex is more favorable than Saratoga Investment.
Insider & Institutional Ownership
19.1% of Saratoga Investment shares are held by institutional investors. Comparatively, 7.2% of Streamex shares are held by institutional investors. 10.6% of Saratoga Investment shares are held by company insiders. Comparatively, 52.7% of Streamex shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Risk and Volatility
Saratoga Investment has a beta of 0.57, suggesting that its share price is 43% less volatile than the S&P 500. Comparatively, Streamex has a beta of 2.02, suggesting that its share price is 102% more volatile than the S&P 500.
Earnings & Valuation
This table compares Saratoga Investment and Streamex”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Saratoga Investment | $125.71 million | 1.68 | $36.60 million | ($0.25) | -54.32 |
| Streamex | $146,000.00 | 330.09 | -$462.77 million | ($9.05) | -0.05 |
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.
Profitability
This table compares Saratoga Investment and Streamex’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Saratoga Investment | -3.35% | 8.66% | 2.78% |
| Streamex | N/A | -462.48% | -307.38% |
Summary
Streamex beats Saratoga Investment on 8 of the 14 factors compared between the two stocks.
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.
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.
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