Financial Contrast: Benev Capital (OTCMKTS:BEVFF) and Scully Royalty (NYSE:SRL)

Scully Royalty (NYSE:SRL) and Benev Capital (OTCMKTS:BEVFF) are both small-cap multi-sector conglomerates companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, earnings, profitability, analyst recommendations, risk, institutional ownership and dividends.

Dividends

Scully Royalty pays an annual dividend of $0.26 per share and has a dividend yield of 4.2%. Benev Capital pays an annual dividend of $0.21 per share and has a dividend yield of 6.0%. Benev Capital pays out 140.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Scully Royalty has raised its dividend for 1 consecutive years.

Volatility & Risk

Scully Royalty has a beta of 0.57, meaning that its stock price is 43% less volatile than the S&P 500. Comparatively, Benev Capital has a beta of 0.75, meaning that its stock price is 25% less volatile than the S&P 500.

Profitability

This table compares Scully Royalty and Benev Capital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Scully Royalty	N/A	N/A	N/A
Benev Capital	49.89%	12.53%	5.80%

Earnings & Valuation

This table compares Scully Royalty and Benev Capital”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Scully Royalty	$35.77 million	2.54	-$15.02 million	N/A	N/A
Benev Capital	$50.66 million	11.83	$26.24 million	$0.15	23.32

Benev Capital has higher revenue and earnings than Scully Royalty.

Analyst Ratings

This is a breakdown of current ratings for Scully Royalty and Benev Capital, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Scully Royalty	1	0	0	0	1.00
Benev Capital	0	0	0	0	0.00

Insider & Institutional Ownership

42.0% of Scully Royalty shares are owned by institutional investors. 1.9% of Scully Royalty shares are owned by company insiders. Comparatively, 12.0% of Benev Capital shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Benev Capital beats Scully Royalty on 9 of the 13 factors compared between the two stocks.

About Scully Royalty

Scully Royalty Ltd. operates as an iron ore mining company in the Americas, Africa, Canada, Asia, and Europe. It operates through three segments: Royalty, Industrial, and Merchant Banking. The company holds royalty interest in the Scully iron ore mine located in the Province of Newfoundland and Labrador, Canada. It also engages in manufacturing, and medical supplies and services industries. In addition, the company offers merchant banking and financial services to small and medium sized enterprises; operates projects in resources and services; and holds two industrial real estate parks. Scully Royalty Ltd. was formerly known as MFC Bancorp Ltd. and changed its name to Scully Royalty Ltd. in June 2019. The company was incorporated in 2017 and is based in Shanghai, the People's Republic of China.

About Benev Capital

Diversified Royalty Corp., a multi-royalty corporation, engages in the acquisition of royalties from multi-location businesses and franchisors in North America. It owns the Sutton, Mr. Lube + Tires, AIR MILES, Mr. Mikes, Nurse Next Door, Oxford Learning Centres, Stratus Building Solutions, and BarBurrito trademarks. The company was formerly known as BENEV Capital Inc. and changed its name to Diversified Royalty Corp. in September 2014. Diversified Royalty Corp. was founded in 1960 and is headquartered in Vancouver, Canada.