Acacia Research (NASDAQ:ACTG – Get Free Report) and DeFi Development (NASDAQ:DFDV – Get Free Report) are both small-cap finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, risk, valuation, analyst recommendations, profitability and earnings.
Earnings and Valuation
This table compares Acacia Research and DeFi Development”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Acacia Research | $285.23 million | 1.56 | $21.68 million | ($0.15) | -30.40 |
| DeFi Development | $11.39 million | 14.81 | -$73.79 million | ($9.98) | -0.55 |
Risk and Volatility
Acacia Research has a beta of 0.44, indicating that its share price is 56% less volatile than the S&P 500. Comparatively, DeFi Development has a beta of -3.75, indicating that its share price is 475% less volatile than the S&P 500.
Institutional and Insider Ownership
86.7% of Acacia Research shares are owned by institutional investors. Comparatively, 0.5% of DeFi Development shares are owned by institutional investors. 1.7% of Acacia Research shares are owned by insiders. Comparatively, 23.6% of DeFi Development shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Profitability
This table compares Acacia Research and DeFi Development’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Acacia Research | -5.39% | 0.44% | 0.33% |
| DeFi Development | -1,319.45% | 17.97% | 5.02% |
Analyst Recommendations
This is a summary of recent recommendations for Acacia Research and DeFi Development, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Acacia Research | 1 | 0 | 1 | 0 | 2.00 |
| DeFi Development | 0 | 1 | 1 | 0 | 2.50 |
Acacia Research currently has a consensus price target of $6.00, indicating a potential upside of 31.58%. DeFi Development has a consensus price target of $4.70, indicating a potential downside of 13.60%. Given Acacia Research’s higher possible upside, equities analysts clearly believe Acacia Research is more favorable than DeFi Development.
Summary
Acacia Research beats DeFi Development on 7 of the 13 factors compared between the two stocks.
About Acacia Research
Acacia is a publicly traded (Nasdaq: ACTG) company that is focused on acquiring and operating businesses across the industrial, energy and technology sectors where it believes it can leverage its expertise, significant capital base, and deep industry relationships to drive value. Acacia evaluates opportunities based on the attractiveness of the underlying cash flows, without regard to a specific investment horizon. Acacia operates its businesses based on three key principles of people, process, and performance and has built a management team with demonstrated expertise in research, transactions and execution, and operations and management.
About DeFi Development
We are a B2B fintech marketplace connecting commercial property borrowers and lenders with a human touch. We seek to revolutionize the commercial real estate lending market by making it hyper-efficient, transparent, and accessible to all rather than the few. Through our online platform, we provide technology that connects commercial mortgage borrowers looking for capital to refinance, build, or purchase commercial property, including, but not limited to, apartment buildings, to commercial property lenders. Borrowers include, but are not limited to, owners, operators, and developers of commercial real estate including multifamily properties and most recently, a growing segment of small business owners, which we believe represents a significant growth opportunity. Lenders include small banks, credit unions, REITs, Fannie Mae® and Freddie Mac® multifamily lenders, FHA® multifamily lenders, debt funds, CMBS lenders, SBA lenders, and more. We have developed a flexible, two-sided, B2B marketplace that connects commercial borrowers and lenders, with a human touch. Commercial property owners, operators, and developers can quickly create an account on our platform, set up their own profile, and submit and manage loan requests on their dashboard in a digital experience. Our algorithms automatically match borrowers to their best loan options or to our internal capital markets advisors that guide the borrower throughout the process and connect them with a potentially suitable loan product and lender. Originators that work at commercial mortgage lenders can access their accounts on our platform to view, sort, and communicate with their matched borrowers in real-time, tracking their loan progress through our portal. Capital markets advisors that work internally have their own interface that gives them access to targeted loan opportunities empowering them to better assist borrowers in managing their choices, leading to the best possible outcomes for both lenders and borrowers while building trust, all of which is intended to enhance our brand. We believe that as we scale, we can use the same technology to provide similar services across the commercial property and small business value chain. Our mission is to remove frictions from traditional commercial property financing, making it easier and more cost-effective for all parties in the transaction. We intend to disintermediate commercial real estate financing, flattening the playing field for commercial property owners and developers, and lenders of all sizes, democratizing an otherwise fractured and elitist market. We were originally formed as Janover Ventures LLC, a Florida limited liability company, on November 28, 2018, and converted to Janover Inc., a Delaware corporation, on March 9, 2021. We are headquartered at 6401 Congress Avenue, Suite 250, Boca Raton, Florida.
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