Critical Analysis: Runway Growth Finance (NASDAQ:RWAY) vs. MoneyLion (NYSE:ML)

Runway Growth Finance (NASDAQ:RWAYGet Rating) and MoneyLion (NYSE:MLGet Rating) are both small-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, profitability, analyst recommendations, institutional ownership, risk, valuation and dividends.

Earnings & Valuation

This table compares Runway Growth Finance and MoneyLion’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Runway Growth Finance $71.36 million 7.09 $45.62 million $0.83 15.05
MoneyLion $171.11 million 1.11 -$182.26 million N/A N/A

Runway Growth Finance has higher earnings, but lower revenue than MoneyLion.

Insider and Institutional Ownership

61.5% of Runway Growth Finance shares are held by institutional investors. Comparatively, 26.4% of MoneyLion shares are held by institutional investors. 0.6% of Runway Growth Finance shares are held by insiders. Comparatively, 14.9% of MoneyLion shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Risk & Volatility

Runway Growth Finance has a beta of 0.72, suggesting that its stock price is 28% less volatile than the S&P 500. Comparatively, MoneyLion has a beta of 1.77, suggesting that its stock price is 77% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for Runway Growth Finance and MoneyLion, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Runway Growth Finance 0 0 3 0 3.00
MoneyLion 0 0 1 0 3.00

Runway Growth Finance presently has a consensus price target of $14.38, indicating a potential upside of 15.09%. MoneyLion has a consensus price target of $5.00, indicating a potential upside of 565.78%. Given MoneyLion’s higher possible upside, analysts plainly believe MoneyLion is more favorable than Runway Growth Finance.

Profitability

This table compares Runway Growth Finance and MoneyLion’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Runway Growth Finance 37.01% 8.89% 6.46%
MoneyLion -28.44% -36.40% -11.58%

Summary

Runway Growth Finance beats MoneyLion on 7 of the 11 factors compared between the two stocks.

About Runway Growth Finance

(Get Rating)

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 MoneyLion

(Get Rating)

MoneyLion Inc. provides a digital financial platform. The company's platform offers access to banking, borrowing, and investing solutions for customers. Its principal products include roarmoney premium mobile banking, personalized investing, cryptocurrency, instacash, membership programs, financial tracking tools, online financial education content destination, affiliated marketing programs, unsecured personal loans, and credit-related decision servicing. The company was founded in 2013 and is headquartered in New York, New York.

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