Head to Head Comparison: AMTD Digital (NYSE:HKD) vs. Runway Growth Finance (NASDAQ:RWAY)

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

Analyst Recommendations

This is a breakdown of current ratings and price targets for Runway Growth Finance and AMTD Digital, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Runway Growth Finance	0	5	1	0	2.17
AMTD Digital	0	0	0	0	N/A

Runway Growth Finance currently has a consensus price target of $13.25, suggesting a potential upside of 1.69%. Given Runway Growth Finance’s higher probable upside, equities analysts plainly believe Runway Growth Finance is more favorable than AMTD Digital.

Institutional & Insider Ownership

64.6% of Runway Growth Finance shares are held by institutional investors. Comparatively, 5.8% of AMTD Digital shares are held by institutional investors. 1.0% of Runway Growth Finance shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Runway Growth Finance and AMTD Digital’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Runway Growth Finance	$164.21 million	3.21	$44.34 million	$1.10	11.85
AMTD Digital	$33.07 million	21.25	$41.74 million	N/A	N/A

Runway Growth Finance has higher revenue and earnings than AMTD Digital.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Runway Growth Finance	27.00%	13.85%	7.07%
AMTD Digital	N/A	N/A	N/A

Volatility and Risk

Runway Growth Finance has a beta of 0.65, indicating that its share price is 35% less volatile than the S&P 500. Comparatively, AMTD Digital has a beta of 2.24, indicating that its share price is 124% more volatile than the S&P 500.

Summary

Runway Growth Finance beats AMTD Digital on 9 of the 11 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 AMTD Digital

AMTD Digital Inc., through its subsidiaries, designs and develops a digital platform to provide financial, media, content and marketing, and investment solutions in Asia. The company operates through Digital Solutions ServicesFinancial Services, Digital Solutions ServicesNon Financial Services, Digital Media, Content, and Marketing Services, and Digital Investments segments. It offers deposit, personal loan, credit card, fund transfer, cross border remittance, insurance, and other payment services. In addition, the company operates SpiderNet ecosystem, a platform to enhance their investor communication, investor relations, and corporate communication to enhance their valuation. Further, it offers movies, podcasts, webinars, and videos through online media platforms. Additionally, the company invests in hotel related activities. AMTD Digital Inc. was incorporated in 2019 and is based in Paris, France. AMTD Digital Inc. operates as a subsidiary of AMTD IDEA Group.