Critical Comparison: Runway Growth Finance (NASDAQ:RWAY) versus Bitcoin Depot (NASDAQ:BTM)

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

Volatility & Risk

Bitcoin Depot has a beta of -0.35, suggesting that its share price is 135% less volatile than the S&P 500. Comparatively, Runway Growth Finance has a beta of 0.59, suggesting that its share price is 41% less volatile than the S&P 500.

Analyst Recommendations

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bitcoin Depot 0 1 3 0 2.75
Runway Growth Finance 0 6 2 0 2.25

Bitcoin Depot currently has a consensus price target of $5.00, indicating a potential upside of 218.47%. Runway Growth Finance has a consensus price target of $11.96, indicating a potential upside of 14.76%. Given Bitcoin Depot’s stronger consensus rating and higher possible upside, research analysts plainly believe Bitcoin Depot is more favorable than Runway Growth Finance.

Profitability

This table compares Bitcoin Depot and Runway Growth Finance’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Bitcoin Depot -3.10% -307.37% -22.72%
Runway Growth Finance 19.32% 13.67% 6.97%

Institutional & Insider Ownership

9.2% of Bitcoin Depot shares are owned by institutional investors. Comparatively, 64.6% of Runway Growth Finance shares are owned by institutional investors. 20.1% of Bitcoin Depot shares are owned by insiders. Comparatively, 1.5% of Runway Growth Finance shares are owned by 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 and Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Bitcoin Depot $629.50 million 0.15 -$26.10 million ($1.87) -0.84
Runway Growth Finance $164.21 million 2.45 $44.34 million $1.10 9.47

Runway Growth Finance has lower revenue, but higher earnings 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.

Summary

Runway Growth Finance beats Bitcoin Depot on 9 of the 14 factors compared between the two stocks.

About Bitcoin Depot

(Get Free Report)

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 Runway Growth Finance

(Get Free Report)

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.

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