Head to Head Survey: PennantPark Investment (NASDAQ:PNNT) versus BTGO (NYSE:BTGO)

PennantPark Investment (NASDAQ:PNNT) and BTGO (NYSE:BTGO) are both small-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, earnings, profitability, analyst recommendations, institutional ownership, valuation and dividends.

Profitability

This table compares PennantPark Investment and BTGO’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PennantPark Investment	11.33%	11.59%	4.23%
BTGO	N/A	N/A	N/A

Analyst Ratings

This is a summary of recent ratings and price targets for PennantPark Investment and BTGO, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PennantPark Investment	1	3	1	0	2.00
BTGO	1	3	10	1	2.73

PennantPark Investment presently has a consensus target price of $5.10, suggesting a potential upside of 62.21%. BTGO has a consensus target price of $12.77, suggesting a potential upside of 104.53%. Given BTGO’s stronger consensus rating and higher possible upside, analysts clearly believe BTGO is more favorable than PennantPark Investment.

Institutional and Insider Ownership

26.6% of PennantPark Investment shares are owned by institutional investors. 3.0% of PennantPark Investment shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares PennantPark Investment and BTGO”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PennantPark Investment	$21.50 million	9.55	$48.85 million	$0.16	19.65
BTGO	$16.15 billion	0.05	-$14.78 million	($1.45)	-4.31

PennantPark Investment has higher earnings, but lower revenue than BTGO. BTGO is trading at a lower price-to-earnings ratio than PennantPark Investment, indicating that it is currently the more affordable of the two stocks.

Summary

PennantPark Investment beats BTGO on 8 of the 13 factors compared between the two stocks.

About PennantPark Investment

PennantPark Investment Corporation, a business development company is a private equity fund specializes in direct and mezzanine investments in middle market companies. It invests in the form of mezzanine debt, senior secured loans, and equity investments. The fund typically invests in buildings and real estate, hotels, gaming and leisure, technology, telecommunications, transportation, information technology services, electronics, healthcare & pharmaceuticals, education and childcare, financial services, printing and publishing, consumer products, business services, energy & Related Services and utilities, distribution, oil and gas, media, environmental services, aerospace and defense, building materials, capital equipment, chemicals, plastics, & rubber, food & beverage, wholesale, manufacturing and basic industries and retail. It invests in equity securities and debt transactions through preferred stock, common stock, warrants, options, senior secured debt, subordinated debt, subordinated loans, first lien debt, mezzanine loans, and distressed debt securities and private equity co-investments. It seeks to invest in companies based in the United States. The fund seeks to invest between $10 million and $100 million cross the capital structure (senior secured loans, subordinated debt, and other investments) in its portfolio companies with EBITDA between $10 to $50 million. Its mezzanine loans, senior secured loans, and other investments in its portfolio companies are between $15 million and $50 million. The fund may also make non-control equity and debt investments.

About BTGO

BitGo Holdings Inc. is the digital asset infrastructure company delivering custody, wallets, staking, trading, financing, stablecoins and settlement services from regulated cold storage. BitGo Holdings Inc. is based in NEW YORK.