Reviewing Portman Ridge Finance (NASDAQ:PTMN) and Metalpha Technology (NASDAQ:MATH)

Portman Ridge Finance (NASDAQ:PTMN) and Metalpha Technology (NASDAQ:MATH) are both small-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, analyst recommendations, risk, profitability, institutional ownership and earnings.

Valuation and Earnings

This table compares Portman Ridge Finance and Metalpha Technology”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Portman Ridge Finance	-$98,000.00	-1,140.36	$11.38 million	($0.64)	-18.98
Metalpha Technology	$30.86 million	2.49	-$3.68 million	N/A	N/A

Portman Ridge Finance has higher earnings, but lower revenue than Metalpha Technology.

Dividends

Portman Ridge Finance pays an annual dividend of $1.88 per share and has a dividend yield of 15.5%. Metalpha Technology pays an annual dividend of $0.10 per share and has a dividend yield of 5.0%. Portman Ridge Finance pays out -293.8% of its earnings in the form of a dividend.

Volatility & Risk

Portman Ridge Finance has a beta of 0.64, suggesting that its stock price is 36% less volatile than the S&P 500. Comparatively, Metalpha Technology has a beta of -1.17, suggesting that its stock price is 217% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations and price targets for Portman Ridge Finance and Metalpha Technology, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Portman Ridge Finance	0	1	0	0	2.00
Metalpha Technology	0	0	0	0	0.00

Portman Ridge Finance currently has a consensus price target of $14.00, indicating a potential upside of 15.23%. Given Portman Ridge Finance’s stronger consensus rating and higher possible upside, analysts clearly believe Portman Ridge Finance is more favorable than Metalpha Technology.

Insider and Institutional Ownership

30.1% of Portman Ridge Finance shares are owned by institutional investors. Comparatively, 30.5% of Metalpha Technology shares are owned by institutional investors. 2.3% of Portman Ridge Finance shares are owned by company insiders. Comparatively, 5.9% of Metalpha Technology shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Portman Ridge Finance and Metalpha Technology’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Portman Ridge Finance	5.47%	14.68%	5.85%
Metalpha Technology	N/A	N/A	N/A

Summary

Portman Ridge Finance beats Metalpha Technology on 9 of the 13 factors compared between the two stocks.

About Portman Ridge Finance

Portman Ridge Finance Corporation is a business development company specializing in investments in unitranche loans (including last out), first lien loans, second lien loans, subordinated debt, equity co-investment, mezzanine, buyout in middle market companies. It also makes acquisitions in businesses complementary to the firm's business. It primarily invests in healthcare, cargo transport, manufacturing, industrial & environmental services, logistics & distribution, media & telecommunications, real estate, education, automotive, agriculture, aerospace/defense, packaging, electronics, finance, non-durable consumer, consumer products, business services, utilities, insurance, and food and beverage sectors. The fund typically invests $1 million to $20 million in its portfolio companies. It provides senior secured term loans from $2 million to $20 million maturing in five to seven years; second lien term loans from $5 million to $15 million maturing in six to eight years; senior unsecured loans $5 million to $23 million maturing in six to eight years; mezzanine loans from $5 million to $15 million maturing in seven to ten years; and equity investments from $1 to $5 million. The fund targets the companies with EBITDA between $5 million and $25 million. While investing in debt securities, it invests in those middle market firms with EBITDA between $10 million and $50 million and/or total debt between $25 million and $150 million. It invests in minority, and majority or control equity positions alongside its private equity sponsor partners.

About Metalpha Technology

Metalpha Technology Holding Limited, together with its subsidiaries, provides wealth management services in Hong Kong. The company offers digital asset-based wealth management services, which include issuing traditional financial and cryptocurrency derivative products to over-the-counter clients, providing crypto derivative market making services, and proprietary trading of digital assets and crypto derivative products; and securities advising and asset management services. It serves institutional investors and high-net-worth individuals. The company was formerly known as Dragon Victory International Limited and changed its name to Metalpha Technology Holding Limited in November 2022. The company was incorporated in 2015 and is headquartered in Wan Chai, Hong Kong.