America First Multifamily Investors (NASDAQ:ATAX – Get Rating) and Runway Growth Finance (NASDAQ:RWAY – Get Rating) 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, institutional ownership, risk, valuation, dividends, profitability and analyst recommendations.
Institutional and Insider Ownership
8.8% of America First Multifamily Investors shares are owned by institutional investors. Comparatively, 61.5% of Runway Growth Finance shares are owned by institutional investors. 1.3% of America First Multifamily Investors shares are owned by company insiders. Comparatively, 0.6% of Runway Growth Finance shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Get America First Multifamily Investors alerts:Dividends
America First Multifamily Investors pays an annual dividend of $1.48 per share. Runway Growth Finance pays an annual dividend of $1.44 per share and has a dividend yield of 12.1%. America First Multifamily Investors pays out 51.4% of its earnings in the form of a dividend. Runway Growth Finance pays out 173.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. America First Multifamily Investors has raised its dividend for 1 consecutive years.
Analyst Ratings
This is a breakdown of recent recommendations and price targets for America First Multifamily Investors and Runway Growth Finance, as provided by MarketBeat.| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| America First Multifamily Investors | 0 | 0 | 1 | 0 | 3.00 |
| Runway Growth Finance | 0 | 0 | 3 | 0 | 3.00 |
America First Multifamily Investors presently has a consensus target price of $21.00, indicating a potential upside of ∞. Runway Growth Finance has a consensus target price of $14.38, indicating a potential upside of 20.80%. Given America First Multifamily Investors' higher possible upside, analysts plainly believe America First Multifamily Investors is more favorable than Runway Growth Finance.
Valuation & Earnings
This table compares America First Multifamily Investors 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 | |
| America First Multifamily Investors | $68.50 million | 0.00 | $38.10 million | $2.88 | N/A |
| Runway Growth Finance | $71.36 million | 6.76 | $45.62 million | $0.83 | 14.34 |
Runway Growth Finance has higher revenue and earnings than America First Multifamily Investors. America First Multifamily Investors is trading at a lower price-to-earnings ratio than Runway Growth Finance, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares America First Multifamily Investors and Runway Growth Finance's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| America First Multifamily Investors | 88.87% | 20.85% | 4.95% |
| Runway Growth Finance | 37.01% | 8.89% | 6.46% |
Risk and Volatility
America First Multifamily Investors has a beta of 0.58, indicating that its stock price is 42% less volatile than the S&P 500. Comparatively, Runway Growth Finance has a beta of 0.71, indicating that its stock price is 29% less volatile than the S&P 500.
Summary
Runway Growth Finance beats America First Multifamily Investors on 8 of the 15 factors compared between the two stocks.
About America First Multifamily Investors
(Get Rating)
America First Multifamily Investors, L.P. acquires, holds, sells, and deals in a portfolio of mortgage revenue bonds (MRBs) that are issued to provide construction and/or permanent financing for multifamily and student housing, and residential and commercial properties. It operates through five segments: Affordable Multifamily MRB Investments, Seniors and Skilled Nursing MRB Investments, MF Properties, Market-Rate Joint Venture Investments, and Public Housing Capital Fund Trusts. As of December 31, 2021, the company owned 74 MRBs issued by state and local housing authorities in order to provide construction or permanent financing for 76 multifamily and seniors housing properties comprising a total of 12,584 rental units located in 17 states; and nine governmental issuer loans related to affordable multifamily properties containing a total of 1,832 rental units located in six states in the United States. America First Capital Associates Limited Partnership Two serves as the general partner of the company. America First Multifamily Investors, L.P. was incorporated in 1998 and is based in Omaha, Nebraska.
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.
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