Investcorp Credit Management BDC (NASDAQ:ICMB – Get Free Report) and DeFi Technologies (NASDAQ:DEFT – Get Free Report) are both small-cap finance companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, analyst recommendations, profitability, dividends and earnings.
Profitability
This table compares Investcorp Credit Management BDC and DeFi Technologies’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Investcorp Credit Management BDC | -134.21% | 0.86% | 0.28% |
| DeFi Technologies | 39.65% | 15.43% | 2.64% |
Volatility and Risk
Investcorp Credit Management BDC has a beta of 0.63, suggesting that its share price is 37% less volatile than the S&P 500. Comparatively, DeFi Technologies has a beta of 4.06, suggesting that its share price is 306% more volatile than the S&P 500.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Investcorp Credit Management BDC | $17.40 million | 0.71 | -$8.85 million | ($1.42) | -0.60 |
| DeFi Technologies | $99.14 million | 2.66 | $62.41 million | $0.06 | 11.32 |
DeFi Technologies has higher revenue and earnings than Investcorp Credit Management BDC. Investcorp Credit Management BDC is trading at a lower price-to-earnings ratio than DeFi Technologies, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of current recommendations and price targets for Investcorp Credit Management BDC and DeFi Technologies, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Investcorp Credit Management BDC | 1 | 0 | 0 | 0 | 1.00 |
| DeFi Technologies | 1 | 1 | 3 | 0 | 2.40 |
DeFi Technologies has a consensus target price of $1.44, suggesting a potential upside of 111.58%. Given DeFi Technologies’ stronger consensus rating and higher possible upside, analysts plainly believe DeFi Technologies is more favorable than Investcorp Credit Management BDC.
Insider and Institutional Ownership
7.8% of Investcorp Credit Management BDC shares are held by institutional investors. 1.3% of Investcorp Credit Management BDC shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Summary
DeFi Technologies beats Investcorp Credit Management BDC on 12 of the 14 factors compared between the two stocks.
About Investcorp Credit Management BDC
Investcorp Credit Management BDC, Inc. is a business development company specializing in loan, mezzanine, middle market, growth capital, acquisitions, market/product expansion, organic growth, refinancings and recapitalization investments. It also selectively invests in mezzanine loans/structured equity and in the equity of portfolio companies through warrants and other instruments, in most cases taking such upside participation interests as part of a broader investment relationship. The fund typically invests in United States and Europe. Within United States, the fund seeks to invest in Midatlantic, Midwest, Northeast, Southeast, and West Coast regions. The fund primarily invests in cable and satellites; consumer services; healthcare equipment and services; industrials; information technology; telecommunication services; and utilities sectors. The fund seeks to invest between $5 million to $25 million in companies that have annual revenues of at least $50 million with EBITDA at least $15 million.
About DeFi Technologies
DeFi Technologies, Inc. engages in the provision of investment services. It plans to acquire equity, debt, or other securities of publicly traded or private companies or other entities. The firm offers DeFi ETNs, DeFi Governance, DeFi Venture and DeFi Treasury. The company was founded by Olivier Francois Roussy Newton and Wouter Witvoet on April 14, 1986 and is headquartered in Toronto, Canada.
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