Bitcoin Depot (NASDAQ:BTM – Get Free Report) and Neostellar Capital (NASDAQ:NSLR – Get Free Report) are both small-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, valuation, analyst recommendations and dividends.
Risk and Volatility
Bitcoin Depot has a beta of 3.12, meaning that its stock price is 212% more volatile than the S&P 500. Comparatively, Neostellar Capital has a beta of 1.49, meaning that its stock price is 49% more volatile than the S&P 500.
Profitability
This table compares Bitcoin Depot and Neostellar Capital’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Bitcoin Depot | -0.94% | -70.95% | -5.08% |
| Neostellar Capital | 6,053.56% | -12.63% | -10.14% |
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Bitcoin Depot | $614.85 million | 0.01 | -$6.18 million | $1.90 | 0.26 |
| Neostellar Capital | $157.82 million | 0.99 | $48.81 million | $4.03 | 1.47 |
Neostellar Capital has lower revenue, but higher earnings than Bitcoin Depot. Bitcoin Depot is trading at a lower price-to-earnings ratio than Neostellar Capital, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
9.2% of Bitcoin Depot shares are held by institutional investors. Comparatively, 12.9% of Neostellar Capital shares are held by institutional investors. 51.8% of Bitcoin Depot shares are held by insiders. Comparatively, 8.3% of Neostellar Capital shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Analyst Recommendations
This is a breakdown of recent ratings for Bitcoin Depot and Neostellar Capital, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Bitcoin Depot | 1 | 3 | 0 | 0 | 1.75 |
| Neostellar Capital | 0 | 1 | 4 | 1 | 3.00 |
Bitcoin Depot currently has a consensus price target of $4.10, indicating a potential upside of 733.50%. Neostellar Capital has a consensus price target of $13.00, indicating a potential upside of 119.22%. Given Bitcoin Depot’s higher possible upside, analysts plainly believe Bitcoin Depot is more favorable than Neostellar Capital.
Summary
Neostellar Capital beats Bitcoin Depot on 10 of the 15 factors compared between the two stocks.
About Bitcoin Depot
Bitcoin Depot Inc. owns and operates a network of cryptocurrency kiosks in North America. Its customers can buy and sell bitcoin, litecoin, and ethereum cryptocurrencies using the BTM kiosk network and other services. The company also engages in the sale of cryptocurrency to consumers at a network of retail locations through its BDCheckout product offering, as well as its website through over-the-counter trade. The company is headquartered in Atlanta, Georgia. Bitcoin Depot Inc. is a subsidiary of BT Assets, Inc.
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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