Head-To-Head Review: Sparta Commercial Services (OTCMKTS:SRCO) vs. Greystone Housing Impact Investors (NYSE:GHI)

Greystone Housing Impact Investors (NYSE:GHI) and Sparta Commercial Services (OTCMKTS:SRCO) are both small-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, earnings, dividends, risk, institutional ownership, profitability and valuation.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Greystone Housing Impact Investors and Sparta Commercial Services, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Greystone Housing Impact Investors	1	0	4	0	2.60
Sparta Commercial Services	0	0	0	0	0.00

Greystone Housing Impact Investors presently has a consensus target price of $13.00, indicating a potential upside of 95.20%. Given Greystone Housing Impact Investors’ stronger consensus rating and higher possible upside, analysts plainly believe Greystone Housing Impact Investors is more favorable than Sparta Commercial Services.

Institutional and Insider Ownership

9.0% of Greystone Housing Impact Investors shares are owned by institutional investors. 1.8% of Greystone Housing Impact Investors shares are owned by company insiders. Comparatively, 0.5% of Sparta Commercial Services shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Volatility and Risk

Greystone Housing Impact Investors has a beta of 0.55, indicating that its stock price is 45% less volatile than the S&P 500. Comparatively, Sparta Commercial Services has a beta of -0.75, indicating that its stock price is 175% less volatile than the S&P 500.

Earnings & Valuation

This table compares Greystone Housing Impact Investors and Sparta Commercial Services”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Greystone Housing Impact Investors	$36.64 million	4.29	$21.32 million	$0.18	37.00
Sparta Commercial Services	$240,000.00	27.62	-$2.12 million	($0.04)	-3.72

Greystone Housing Impact Investors has higher revenue and earnings than Sparta Commercial Services. Sparta Commercial Services is trading at a lower price-to-earnings ratio than Greystone Housing Impact Investors, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Greystone Housing Impact Investors and Sparta Commercial Services’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Greystone Housing Impact Investors	0.98%	5.63%	1.11%
Sparta Commercial Services	-560.83%	N/A	-212.71%

Summary

Greystone Housing Impact Investors beats Sparta Commercial Services on 12 of the 14 factors compared between the two stocks.

About Greystone Housing Impact Investors

Greystone Housing Impact Investors LP acquires, holds, sells, and deals in a portfolio of mortgage revenue bonds (MRBs) that are issued to provide construction and/or permanent financing for multifamily, student, and senior citizen housing; skilled nursing properties; and commercial properties in the United States. The company operates in four segments: Affordable Multifamily MRB Investments; Seniors and Skilled Nursing MRB Investments; MF Properties; Market-Rate Joint Venture Investments. It also invests in governmental issuer loans. The company was formerly known as America First Multifamily Investors, L.P. and changed its name to Greystone Housing Impact Investors LP in December 2022. Greystone Housing Impact Investors LP was incorporated in 1998 and is based in Omaha, Nebraska.

About Sparta Commercial Services

Sparta Commercial Services, Inc. develops, markets, and manages business websites and mobile applications for smartphones and tablets under the iMobileApp name. It offers mobile applications for vehicle dealerships, racetracks, private clubs, country clubs, schools and entertainment venues, restaurants, grocery stores, and various other merchant types. The company also owns and manages websites, which sell motorcycle, recreational vehicle, and truck title history reports for consumers, retailers, municipals, nonprofits, auction houses, banks, and insurance companies; and designs, launches, maintains, and hosts websites for businesses, as well as provides text messaging services. In addition, it offers eCommerce, customer relationship management development and integration, search engine optimization, social media marketing, and online reviews website services to its clients. Further, the company provides an equipment-leasing product for local and state agencies that helps to finance their essential equipment needs, including police motorcycles, cruisers, buses, fire trucks, and EMS equipment; and a range of hemp-derived cannabinol products through newworldhealthcbd.com. The company was incorporated in 1980 and is headquartered in New York, New York.