Reviewing Runway Growth Finance (NASDAQ:RWAY) & BTC Digital (NASDAQ:BTCT)

BTC Digital (NASDAQ:BTCT) and Runway Growth Finance (NASDAQ:RWAY) are both small-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, profitability, earnings, institutional ownership and dividends.

Valuation & Earnings

This table compares BTC Digital and Runway Growth Finance’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BTC Digital	$10.82 million	0.30	-$2.82 million	N/A	N/A
Runway Growth Finance	$41.74 million	9.75	$44.34 million	$1.10	9.60

Runway Growth Finance has higher revenue and earnings than BTC Digital.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
BTC Digital	N/A	N/A	N/A
Runway Growth Finance	19.32%	13.67%	6.97%

Volatility and Risk

BTC Digital has a beta of -0.08, suggesting that its share price is 108% less volatile than the S&P 500. Comparatively, Runway Growth Finance has a beta of 0.6, suggesting that its share price is 40% less volatile than the S&P 500.

Insider & Institutional Ownership

7.3% of BTC Digital shares are owned by institutional investors. Comparatively, 64.6% of Runway Growth Finance shares are owned by institutional investors. 6.8% of BTC Digital shares are owned by insiders. Comparatively, 1.5% of Runway Growth Finance shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and price targets for BTC Digital and Runway Growth Finance, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BTC Digital	0	0	0	0	N/A
Runway Growth Finance	0	6	2	0	2.25

Runway Growth Finance has a consensus price target of $11.96, indicating a potential upside of 13.24%. Given Runway Growth Finance’s higher probable upside, analysts clearly believe Runway Growth Finance is more favorable than BTC Digital.

Summary

Runway Growth Finance beats BTC Digital on 10 of the 11 factors compared between the two stocks.

About BTC Digital

BTC Digital Ltd. a crypto asset technology company engages in bitcoin mining business. It is also involved in mining machines resale and rental business. The company was formerly known as Meten Holding Group Ltd. and changed its name to BTC Digital Ltd. in August 2023. The company was founded in 2006 and is headquartered in Shenzhen, China.

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.