Head to Head Comparison: MDB Capital (NASDAQ:MDBH) versus Runway Growth Finance (NASDAQ:RWAY)

Runway Growth Finance (NASDAQ:RWAY) and MDB Capital (NASDAQ:MDBH) are both small-cap finance companies, but which is the better business? We will compare the two companies based on the strength of their valuation, dividends, profitability, institutional ownership, risk, analyst recommendations and earnings.

Insider & Institutional Ownership

64.6% of Runway Growth Finance shares are owned by institutional investors. Comparatively, 0.3% of MDB Capital shares are owned by institutional investors. 1.5% of Runway Growth Finance shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings for Runway Growth Finance and MDB Capital, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Runway Growth Finance	0	6	2	0	2.25
MDB Capital	0	0	0	0	N/A

Runway Growth Finance presently has a consensus target price of $11.96, suggesting a potential upside of 14.76%. Given Runway Growth Finance’s higher probable upside, equities analysts clearly believe Runway Growth Finance is more favorable than MDB Capital.

Valuation and Earnings

This table compares Runway Growth Finance and MDB Capital’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Runway Growth Finance	$164.21 million	2.45	$44.34 million	$1.10	9.47
MDB Capital	$1.30 million	266.95	-$6.97 million	N/A	N/A

Runway Growth Finance has higher revenue and earnings than MDB Capital.

Profitability

This table compares Runway Growth Finance and MDB Capital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Runway Growth Finance	19.32%	13.67%	6.97%
MDB Capital	N/A	-56.19%	-48.57%

Summary

Runway Growth Finance beats MDB Capital on 9 of the 10 factors compared between the two stocks.

About Runway Growth Finance

Runway Growth Finance Corp. is a business development company specializing investments in senior-secured loans to late stage and growth companies. It prefers to make investments in companies engaged in the technology, life sciences, healthcare and information services, business services and select consumer services and products sectors. It prefers to investments in companies engaged in electronic equipment and instruments, systems software, hardware, storage and peripherals and specialized consumer services, application software, healthcare technology, internet software and services, data processing and outsourced services, internet retail, human resources and employment services, biotechnology, healthcare equipment and education services. It invests in senior secured loans between $10 million and $75 million.

About MDB Capital

MDB Capital Holdings, LLC, through its subsidiaries, primarily operates as a broker-dealer. The company operates through two segments, Broker Dealer & Intellectual Property Service, and Technology Development. The Broker Dealer & Intellectual Property Service segment operates as a full-service broker dealer that focuses on conducting private and public securities offerings, as well as providing research services for investment banking due diligence. The Technology Development segment engages in the synthetic biology technology development business. The company was founded in 1997 and is based in Addison, Texas.