Comparing Heritage Global (NASDAQ:HGBL) and BTCS (OTCMKTS:BTCS)

Heritage Global (NASDAQ:HGBL) and BTCS (OTCMKTS:BTCS) are both small-cap financial services companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, profitability, risk, valuation, earnings, institutional ownership and dividends.

Insider & Institutional Ownership

33.5% of Heritage Global shares are owned by institutional investors. Comparatively, 3.5% of BTCS shares are owned by institutional investors. 12.8% of Heritage Global shares are owned by company insiders. Comparatively, 40.2% of BTCS shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Heritage Global and BTCS”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Heritage Global	$55.02 million	1.14	$12.48 million	$0.30	5.60
BTCS	$1.65 million	11.39	-$15.89 million	$1.29	0.93

Heritage Global has higher revenue and earnings than BTCS. BTCS is trading at a lower price-to-earnings ratio than Heritage Global, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Heritage Global and BTCS, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Heritage Global	0	0	0	0	N/A
BTCS	0	0	0	0	N/A

Risk and Volatility

Heritage Global has a beta of 1.19, suggesting that its stock price is 19% more volatile than the S&P 500. Comparatively, BTCS has a beta of 1.52, suggesting that its stock price is 52% more volatile than the S&P 500.

Profitability

This table compares Heritage Global and BTCS’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Heritage Global	20.29%	19.14%	13.81%
BTCS	-370.07%	-43.20%	-37.26%

Summary

Heritage Global beats BTCS on 7 of the 11 factors compared between the two stocks.

About Heritage Global

Heritage Global Inc., together with its subsidiaries, operates as an asset services company with focus on financial and industrial asset transactions. The company operates in three segments: Auction and Liquidation, Refurbishment & Resale, and Brokerage. It provides a suite of market making, acquisitions, refurbishment, dispositions, valuations, and secured lending services. The company focuses on identifying, valuing, acquiring, and monetizing underlying tangible assets. It acts as an adviser, as well as a principal, acquiring, or brokering manufacturing facilities; surplus industrial machinery and equipment; industrial inventories; and charged-off receivable portfolios. The company was formerly known as Counsel RB Capital Inc. and changed its name to Heritage Global, Inc. in August 2013. Heritage Global, Inc. was founded in 1937 and is headquartered in San Diego, California.

About BTCS

BTCS Inc. operates in blockchain technology sector the United States. Its blockchain-infrastructure secures and operates validator nodes on disruptive blockchain networks, as well as validates transactions for crypto holding delegations on dPoS blockchains. The company offers StakeSeeker, a cryptocurrency dashboard and staking-as-a-service platform that allows crypto asset holders to earn rewards by participating in network consensus mechanisms; and Builder+, a Ethereum block builder offered to maximize validator earnings by utilizing algorithms to construct optimized blocks for on-chain validation. In addition, it is involved in the development of ChainQ, an AI-powered blockchain data and analytics platform, which allows users to query real-time and historical on-chain blockchain data. The company was formerly known as Bitcoin Shop, Inc. and changed its name to BTCS Inc. in July 2015. BTCS Inc. was founded in 2014 and is based in Silver Spring, Maryland.