Reviewing MDB Capital (NASDAQ:MDBH) and Runway Growth Finance (NASDAQ:RWAY)

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

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MDB Capital	0	0	0	0	N/A
Runway Growth Finance	0	6	2	0	2.25

Runway Growth Finance has a consensus price target of $11.96, indicating a potential upside of 13.46%. Given Runway Growth Finance’s higher probable upside, analysts plainly believe Runway Growth Finance is more favorable than MDB Capital.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
MDB Capital	N/A	-56.19%	-48.57%
Runway Growth Finance	19.32%	13.67%	6.97%

Institutional & Insider Ownership

0.3% of MDB Capital shares are held by institutional investors. Comparatively, 64.6% of Runway Growth Finance shares are held by institutional investors. 1.5% of Runway Growth Finance shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares MDB Capital and Runway Growth Finance’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MDB Capital	$1.30 million	263.00	-$6.97 million	N/A	N/A
Runway Growth Finance	$164.21 million	2.47	$44.34 million	$1.10	9.58

Runway Growth Finance has higher revenue and earnings than MDB Capital.

Summary

Runway Growth Finance beats MDB Capital on 9 of the 10 factors compared between the two stocks.

About MDB Capital

MDB Capital Holdings, LLC, through its subsidiaries, primarily operates as a broker-dealer. The company operates through two segments, Broker Dealer & Intellectual Property Service, and Technology Development. The Broker Dealer & Intellectual Property Service segment operates as a full-service broker dealer that focuses on conducting private and public securities offerings, as well as providing research services for investment banking due diligence. The Technology Development segment engages in the synthetic biology technology development business. The company was founded in 1997 and is based in Addison, Texas.

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.