Critical Survey: Forge Global (NYSE:FRGE) and Powell Max (NASDAQ:PMAX)

Forge Global (NYSE:FRGE) and Powell Max (NASDAQ:PMAX) are both small-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, risk, analyst recommendations, profitability, institutional ownership, dividends and earnings.

Profitability

This table compares Forge Global and Powell Max’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Forge Global	-73.62%	-28.21%	-24.21%
Powell Max	N/A	N/A	N/A

Institutional and Insider Ownership

40.7% of Forge Global shares are owned by institutional investors. 4.5% of Forge Global shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Forge Global and Powell Max”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Forge Global	$79.33 million	2.84	-$66.33 million	($5.33)	-3.11
Powell Max	$4.69 million	0.90	-$2.33 million	N/A	N/A

Powell Max has lower revenue, but higher earnings than Forge Global.

Analyst Recommendations

This is a summary of current ratings for Forge Global and Powell Max, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Forge Global	1	1	3	0	2.40
Powell Max	1	0	0	0	1.00

Forge Global presently has a consensus target price of $35.50, suggesting a potential upside of 114.49%. Given Forge Global’s stronger consensus rating and higher possible upside, analysts clearly believe Forge Global is more favorable than Powell Max.

Summary

Forge Global beats Powell Max on 7 of the 11 factors compared between the two stocks.

About Forge Global

Forge Global Holdings, Inc. operates a financial services platform in California. The company's platform solutions include trading solutions, a platform that connects investors with private company stockholders and enables them to facilitate private share transactions; and custody solutions, a non-depository trust company that enables clients to securely custody and manage assets through an online portal. It also provides data solutions, such as information and insight to navigate, analyze, and make investment decisions to market participants in the private market. The company was founded in 2014 and is headquartered in San Francisco, California.

About Powell Max

Powell Max Limited is a financial communications services provider. Powell Max Limited is based in JERSEY CITY, N.J.