Stellus Capital Investment (NYSE:SCM) and Molori Energy (OTCMKTS:MOLOF) are both small-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, valuation, analyst recommendations, profitability, dividends, institutional ownership and risk.
Earnings and Valuation
This table compares Stellus Capital Investment and Molori Energy’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Stellus Capital Investment||$39.65 million||5.48||$22.61 million||$1.21||11.26|
|Molori Energy||$110,000.00||24.68||$1.73 million||N/A||N/A|
Volatility and Risk
Stellus Capital Investment has a beta of 0.68, meaning that its stock price is 32% less volatile than the S&P 500. Comparatively, Molori Energy has a beta of 1.17, meaning that its stock price is 17% more volatile than the S&P 500.
This is a summary of current ratings for Stellus Capital Investment and Molori Energy, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Stellus Capital Investment||0||1||0||0||2.00|
Stellus Capital Investment presently has a consensus price target of $14.00, indicating a potential upside of 2.71%. Given Stellus Capital Investment’s higher probable upside, equities research analysts plainly believe Stellus Capital Investment is more favorable than Molori Energy.
This table compares Stellus Capital Investment and Molori Energy’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Stellus Capital Investment||60.59%||8.59%||4.01%|
Stellus Capital Investment pays an annual dividend of $1.36 per share and has a dividend yield of 10.0%. Molori Energy does not pay a dividend. Stellus Capital Investment pays out 112.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Institutional and Insider Ownership
21.2% of Stellus Capital Investment shares are owned by institutional investors. 5.4% of Stellus Capital Investment shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Stellus Capital Investment beats Molori Energy on 9 of the 12 factors compared between the two stocks.
About Stellus Capital Investment
Stellus Capital Investment Corporation is a business development company specializing in investments in private middle-market companies. It invests through first lien, second lien, unitranche, and mezzanine debt financing, often with a corresponding equity investment. The fund seeks to invest in companies with an EBITDA between $5 million and $50 million.
About Molori Energy
Molori Energy Inc. operates as an oil and gas production company in Texas, the United States. It owns working interest in various oil and gas leases located in the Texas Panhandle. The company was formerly known as Taipan Resources Inc. and changed its name to Molori Energy Inc. in January 2017. Molori Energy Inc. was incorporated in 2006 and is headquartered in Vancouver, Canada.
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