Runway Growth Finance (NASDAQ:RWAY – Get Free Report) and Franklin Resources (NYSE:BEN – Get Free Report) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, earnings, institutional ownership, dividends, profitability, risk and valuation.
Insider and Institutional Ownership
64.6% of Runway Growth Finance shares are held by institutional investors. Comparatively, 47.6% of Franklin Resources shares are held by institutional investors. 1.0% of Runway Growth Finance shares are held by insiders. Comparatively, 23.4% of Franklin Resources shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Profitability
This table compares Runway Growth Finance and Franklin Resources’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Runway Growth Finance | N/A | N/A | N/A |
| Franklin Resources | N/A | N/A | N/A |
Valuation and Earnings
This table compares Runway Growth Finance and Franklin Resources”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Runway Growth Finance | N/A | N/A | N/A | $0.11 | 58.45 |
| Franklin Resources | N/A | N/A | N/A | $1.47 | 21.26 |
Franklin Resources 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 Ratings
This is a summary of current recommendations for Runway Growth Finance and Franklin Resources, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Runway Growth Finance | 2 | 3 | 2 | 0 | 2.00 |
| Franklin Resources | 1 | 6 | 4 | 0 | 2.27 |
Runway Growth Finance presently has a consensus target price of $8.40, indicating a potential upside of 30.64%. Franklin Resources has a consensus target price of $35.89, indicating a potential upside of 14.83%. Given Runway Growth Finance’s higher possible upside, research analysts clearly believe Runway Growth Finance is more favorable than Franklin Resources.
Summary
Franklin Resources beats Runway Growth Finance on 4 of the 6 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 Franklin Resources
Franklin Resources, Inc. is a publicly owned asset management holding company. Through its subsidiaries, the firm provides its services to individuals, institutions, pension plans, trusts, and partnerships. It launches equity, fixed income, balanced, and multi-asset mutual funds through its subsidiaries. The firm invests in the public equity, fixed income, and alternative markets. Franklin Resources, Inc. was founded in 1947 and is based in San Mateo, California with an additional office in Calgary, Canada; Dubai, United Arab Emirates; Edinburgh, United Kingdom; Fort Lauderdale, United States; Hyderabad, India; London, United Kingdom; Rancho Cordova, United states; Shanghai, China; Singapore; Stamford, United States; and Vienna, Austria.
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