Cannae (NYSE:CNNE – Get Free Report) and Neostellar Capital (NASDAQ:NSLR – Get Free Report) are both small-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, risk, valuation, profitability, analyst recommendations, institutional ownership and dividends.
Risk and Volatility
Cannae has a beta of 1.19, suggesting that its stock price is 19% more volatile than the S&P 500. Comparatively, Neostellar Capital has a beta of 1.49, suggesting that its stock price is 49% more volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current ratings and target prices for Cannae and Neostellar Capital, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Cannae | 1 | 0 | 2 | 0 | 2.33 |
| Neostellar Capital | 0 | 1 | 4 | 1 | 3.00 |
Dividends
Cannae pays an annual dividend of $0.60 per share and has a dividend yield of 3.4%. Neostellar Capital pays an annual dividend of $0.25 per share and has a dividend yield of 4.1%. Cannae pays out -19.9% of its earnings in the form of a dividend. Neostellar Capital pays out 6.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
Profitability
This table compares Cannae and Neostellar Capital’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Cannae | -38.18% | -14.10% | -10.60% |
| Neostellar Capital | 6,053.56% | -12.63% | -10.14% |
Valuation and Earnings
This table compares Cannae and Neostellar Capital”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Cannae | $423.60 million | 1.79 | -$513.20 million | ($3.02) | -5.78 |
| Neostellar Capital | $1.69 million | 94.92 | $48.81 million | $4.03 | 1.50 |
Neostellar Capital has lower revenue, but higher earnings than Cannae. Cannae is trading at a lower price-to-earnings ratio than Neostellar Capital, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
88.1% of Cannae shares are held by institutional investors. Comparatively, 13.0% of Neostellar Capital shares are held by institutional investors. 10.9% of Cannae shares are held by company insiders. Comparatively, 8.3% of Neostellar Capital shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Summary
Neostellar Capital beats Cannae on 13 of the 17 factors compared between the two stocks.
About Cannae
Cannae Holdings, Inc. is a principal investment firm. The firm primarily invests in restaurants, technology enabled healthcare services, financial services and more. It takes both minority and majority stakes. Cannae Holdings, Inc. was founded in 2014 and is based in Las Vegas, Nevada.
About Neostellar Capital
SuRo Capital Corp. is a business development company. The firm seeks to invest in growing, late stage, venture capital-backed private companies. SuRo Capital Corp. was founded in 2010 and is based in San Francisco, California.
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