Comparing Runway Growth Finance (NASDAQ:RWAY) & Hut 8 (NASDAQ:HUT)

Hut 8 (NASDAQ:HUT) and Runway Growth Finance (NASDAQ:RWAY) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, risk, earnings, valuation, analyst recommendations, institutional ownership and profitability.

Valuation and Earnings

This table compares Hut 8 and Runway Growth Finance”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hut 8	$73.90 million	32.82	-$186.77 million	N/A	N/A
Runway Growth Finance	$53.67 million	7.26	$44.34 million	$1.04	10.02

Runway Growth Finance has lower revenue, but higher earnings than Hut 8.

Profitability

This table compares Hut 8 and Runway Growth Finance’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hut 8	N/A	N/A	N/A
Runway Growth Finance	27.05%	12.91%	6.33%

Volatility & Risk

Hut 8 has a beta of 3.99, indicating that its stock price is 299% more volatile than the S&P 500. Comparatively, Runway Growth Finance has a beta of 0.58, indicating that its stock price is 42% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for Hut 8 and Runway Growth Finance, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hut 8	0	0	6	0	3.00
Runway Growth Finance	0	6	2	0	2.25

Hut 8 presently has a consensus price target of $30.17, suggesting a potential upside of 16.38%. Runway Growth Finance has a consensus price target of $11.79, suggesting a potential upside of 13.16%. Given Hut 8’s stronger consensus rating and higher probable upside, equities analysts plainly believe Hut 8 is more favorable than Runway Growth Finance.

Institutional & Insider Ownership

31.8% of Hut 8 shares are held by institutional investors. Comparatively, 64.6% of Runway Growth Finance shares are held by institutional investors. 12.0% of Hut 8 shares are held by insiders. Comparatively, 1.5% of Runway Growth Finance shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Hut 8 beats Runway Growth Finance on 7 of the 12 factors compared between the two stocks.

About Hut 8

Hut 8 Corp., together with its subsidiaries, acquires, builds, manages, and operates data centers for digital assets mining, computing, and artificial intelligence in the United States. It operates in four segments: Digital Assets Mining, Managed Services, High Performance Computing Colocation and Cloud, and Other. The company mines Bitcoin. It also offers managed services for energy infrastructure development, such as site design, procurement, and construction management; software automation, process design, personnel hiring, and team training; utilities contracts, hosting operations, and customer management; energy portfolio optimization and strategic initiatives; and finance, accounting, and safety services for digital asset mining site owners, governments, and data center developers. In addition, the company provides colocation, cloud, and connectivity services; hosting services, which include the provision of mining equipment and space, as well as monitors, troubleshoots, repairs, and maintains customer mining equipment; and equipment sales and repair services. Hut 8 Corp. was founded in 2017 and is based in Miami, Florida.

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.