Mentor Capital (OTCMKTS:MNTR) and Safeguard Scientifics (NYSE:SFE) are both small-cap finance companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, profitability, valuation, institutional ownership, earnings, risk and dividends.
Risk & Volatility
Mentor Capital has a beta of 3.05, meaning that its stock price is 205% more volatile than the S&P 500. Comparatively, Safeguard Scientifics has a beta of 0.94, meaning that its stock price is 6% less volatile than the S&P 500.
This is a breakdown of recent ratings and recommmendations for Mentor Capital and Safeguard Scientifics, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Safeguard Scientifics has a consensus price target of $25.00, indicating a potential upside of 107.13%. Given Safeguard Scientifics’ higher probable upside, analysts clearly believe Safeguard Scientifics is more favorable than Mentor Capital.
Insider & Institutional Ownership
0.0% of Mentor Capital shares are held by institutional investors. Comparatively, 68.3% of Safeguard Scientifics shares are held by institutional investors. 6.2% of Safeguard Scientifics shares are held by 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.
Valuation and Earnings
This table compares Mentor Capital and Safeguard Scientifics’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Mentor Capital||$5.28 million||1.31||-$410,000.00||N/A||N/A|
|Safeguard Scientifics||N/A||N/A||-$15.63 million||($0.76)||-15.88|
Mentor Capital has higher revenue and earnings than Safeguard Scientifics.
This table compares Mentor Capital and Safeguard Scientifics’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Safeguard Scientifics beats Mentor Capital on 6 of the 9 factors compared between the two stocks.
Mentor Capital Company Profile
Mentor Capital, Inc. is a private equity firm specializing in acquisitions and emerging growth investments. The firm provides passive equity funding and liquidity to smaller companies and owners in the medical, marijuana and social use cannabis companies. It invests in shelf IPO's and public and private companies and seeks to provide public market access to owners of small private companies. The firm specializes in pre-IPO investments in Cannabis companies. In case of shelf IPO's, the firm prefers to invest in companies with sales greater than $40 million. It prefers to take significant position in its portfolio companies. The firm invests only in companies that have earnings. Mentor Capital, Inc. was founded in 1985 and is based in Ramona, California.
Safeguard Scientifics Company Profile
Safeguard Scientifics, Inc. no longer investing. It is a private equity and venture capital firm specializing in expansion financings, growth capital, management buyouts, recapitalizations, industry consolidations, corporate spinouts, growth stage, and early stage financings. It initially invests in a Series A-C round and opportunistically in a seed round. The firm prefers to make investments in companies engaged in the technology, financial services, and healthcare sector. Within the technology sector, it invests in software as a service, adtech / digital media, Internet of Everything, enhanced security, predictive analytics, machine learning, artificial intelligence, enterprise software, technology enabled services, internet/new media, financial technology, cloud, mobile, social, big data, in memory, and selected business services with capital requirements of up to $25 million. Within healthcare sector, the firm invests in molecular and point-of-care diagnostics, medical devices, regenerative medicine, medical technology, digital health, healthcare technology, specialty pharmaceuticals, and selected healthcare services. It invests throughout the United States with a focus on Mid-Atlantic region, and Southeastern Canada. The firm primarily invests between $5 million and $25 million in growth equity financing and between $5 million and $10 million in early-stage financing. It typically invests in the capital structures including owner financed and bootstrapped companies, corporate division or business unit, and venture capital-backed seeking a growth partner. The firm prefers to be the largest shareholder in its portfolio companies, with ownership in the range of 20 percent to 50 percent. However, it may occasionally take a majority or smaller stake in its portfolio companies. It prefers to invest in companies having proprietary technology and intellectual property. The firm prefers to take a Board seat in its portfolio companies. The company was founded in 1953 as Lancaster Corporation and changed its name to Safeguard Scientifics, Inc. in 1981. Safeguard Scientifics, Inc. is based in Radnor, Pennsylvania with an additional office in Weston, Massachusetts.
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