DeFi Development (NASDAQ:DFDV – Get Free Report) and Forge Global (NYSE:FRGE – Get Free Report) are both small-cap finance companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, dividends, profitability and risk.
Analyst Recommendations
This is a breakdown of recent ratings and target prices for DeFi Development and Forge Global, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| DeFi Development | 1 | 0 | 1 | 0 | 2.00 |
| Forge Global | 1 | 3 | 0 | 0 | 1.75 |
DeFi Development currently has a consensus target price of $10.40, suggesting a potential upside of 228.80%. Forge Global has a consensus target price of $45.00, suggesting a potential upside of 0.00%. Given DeFi Development’s stronger consensus rating and higher possible upside, equities analysts plainly believe DeFi Development is more favorable than Forge Global.
Insider and Institutional Ownership
0.5% of DeFi Development shares are owned by institutional investors. Comparatively, 40.7% of Forge Global shares are owned by institutional investors. 23.6% of DeFi Development shares are owned by insiders. Comparatively, 4.5% of Forge Global shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Volatility and Risk
DeFi Development has a beta of -3.21, suggesting that its share price is 421% less volatile than the S&P 500. Comparatively, Forge Global has a beta of 2.18, suggesting that its share price is 118% more volatile than the S&P 500.
Valuation & Earnings
This table compares DeFi Development and Forge Global”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| DeFi Development | $11.39 million | 8.61 | -$73.79 million | ($9.98) | -0.32 |
| Forge Global | $92.88 million | 6.71 | -$66.33 million | ($5.20) | -8.65 |
Forge Global has higher revenue and earnings than DeFi Development. Forge Global is trading at a lower price-to-earnings ratio than DeFi Development, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares DeFi Development and Forge Global’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| DeFi Development | -1,319.45% | 17.97% | 5.02% |
| Forge Global | -71.87% | -29.06% | -24.63% |
Summary
DeFi Development beats Forge Global on 8 of the 14 factors compared between the two stocks.
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.
About Forge Global
Forge Global Holdings, Inc. operates a financial services platform in California. The company's platform solutions include trading solutions, a platform that connects investors with private company stockholders and enables them to facilitate private share transactions; and custody solutions, a non-depository trust company that enables clients to securely custody and manage assets through an online portal. It also provides data solutions, such as information and insight to navigate, analyze, and make investment decisions to market participants in the private market. The company was founded in 2014 and is headquartered in San Francisco, California.
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