Analyzing Bitcoin Depot (NASDAQ:BTM) and Runway Growth Finance (NASDAQ:RWAY)

Runway Growth Finance (NASDAQ:RWAY) and Bitcoin Depot (NASDAQ:BTM) are both small-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, dividends, earnings, valuation and risk.

Profitability

This table compares Runway Growth Finance and Bitcoin Depot’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%
Bitcoin Depot	-3.10%	-307.37%	-22.72%

Risk & Volatility

Runway Growth Finance has a beta of 0.59, suggesting that its share price is 41% less volatile than the S&P 500. Comparatively, Bitcoin Depot has a beta of -0.34, suggesting that its share price is 134% less volatile than the S&P 500.

Earnings and Valuation

This table compares Runway Growth Finance and Bitcoin Depot”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Runway Growth Finance	$164.21 million	2.41	$44.34 million	$1.10	9.34
Bitcoin Depot	$629.50 million	0.15	-$26.10 million	($1.87)	-0.84

Runway Growth Finance has higher earnings, but lower revenue than Bitcoin Depot. Bitcoin Depot is trading at a lower price-to-earnings ratio than Runway Growth Finance, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Runway Growth Finance and Bitcoin Depot, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Runway Growth Finance	0	6	2	0	2.25
Bitcoin Depot	0	1	2	0	2.67

Runway Growth Finance currently has a consensus price target of $11.96, indicating a potential upside of 16.44%. Bitcoin Depot has a consensus price target of $3.67, indicating a potential upside of 132.07%. Given Bitcoin Depot’s stronger consensus rating and higher possible upside, analysts plainly believe Bitcoin Depot is more favorable than Runway Growth Finance.

Institutional & Insider Ownership

64.6% of Runway Growth Finance shares are owned by institutional investors. Comparatively, 9.2% of Bitcoin Depot shares are owned by institutional investors. 1.5% of Runway Growth Finance shares are owned by insiders. Comparatively, 20.1% of Bitcoin Depot shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Runway Growth Finance beats Bitcoin Depot on 9 of the 13 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 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.