Harvest Capital Credit (NASDAQ: HCAP) and BLUCORA INC Common Stock (NASDAQ:BCOR) are both small-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, dividends, analyst recommendations, profitability, risk, institutional ownership and valuation.
Insider & Institutional Ownership
Get Harvest Capital Credit alerts:8.1% of Harvest Capital Credit shares are owned by institutional investors. Comparatively, 94.3% of BLUCORA INC Common Stock shares are owned by institutional investors. 9.3% of Harvest Capital Credit shares are owned by insiders. Comparatively, 2.9% of BLUCORA INC Common Stock shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Dividends
Harvest Capital Credit pays an annual dividend of $1.14 per share and has a dividend yield of 10.6%. BLUCORA INC Common Stock does not pay a dividend. Harvest Capital Credit pays out 89.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Risk and Volatility
Harvest Capital Credit has a beta of 0.74, meaning that its stock price is 26% less volatile than the S&P 500. Comparatively, BLUCORA INC Common Stock has a beta of -0.04, meaning that its stock price is 104% less volatile than the S&P 500.
Valuation and Earnings
This table compares Harvest Capital Credit and BLUCORA INC Common Stock’s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Harvest Capital Credit | $18.70 million | 3.68 | $1.63 million | $1.28 | 8.42 |
| BLUCORA INC Common Stock | $509.56 million | 3.43 | $27.03 million | $1.22 | 30.45 |
BLUCORA INC Common Stock has higher revenue and earnings than Harvest Capital Credit. Harvest Capital Credit is trading at a lower price-to-earnings ratio than BLUCORA INC Common Stock, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Harvest Capital Credit and BLUCORA INC Common Stock’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Harvest Capital Credit | 7.70% | 9.62% | 6.17% |
| BLUCORA INC Common Stock | 7.84% | 13.11% | 7.13% |
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for Harvest Capital Credit and BLUCORA INC Common Stock, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Harvest Capital Credit | 0 | 2 | 0 | 0 | 2.00 |
| BLUCORA INC Common Stock | 0 | 2 | 4 | 0 | 2.67 |
Harvest Capital Credit currently has a consensus target price of $12.00, indicating a potential upside of 11.32%. BLUCORA INC Common Stock has a consensus target price of $37.45, indicating a potential upside of 0.80%. Given Harvest Capital Credit’s higher probable upside, equities research analysts plainly believe Harvest Capital Credit is more favorable than BLUCORA INC Common Stock.
Summary
BLUCORA INC Common Stock beats Harvest Capital Credit on 10 of the 16 factors compared between the two stocks.
Harvest Capital Credit Company Profile
Harvest Capital Credit Corporation is an externally managed, closed-end, non-diversified management investment company. The Company operates as a business development company and provides customized financing solutions for small to mid-sized companies. Its investment objective is to generate both current income and capital appreciation by making direct investments in the form of subordinated debt, senior debt, and to a lesser extent, minority equity investments in privately-held the United States small to mid-sized companies. Its investment portfolio includes over 56.8% of senior secured term loans, 40.8% of junior secured term loans, 1.3% of equity investments and 1.1% of collateralized loan obligation (CLO) equity at fair value. It may also invest in other investments, such as loans to larger, publicly-traded companies, high-yield bonds and distressed debt securities. It may also invest in debt and equity securities issued by CLO funds. HCAP Advisors LLC is its investment adviser.
BLUCORA INC Common Stock Company Profile
Blucora, Inc. provides technology-enabled financial solutions to consumers, small business owners, and tax professionals in the United States. The company operates through two segments, Wealth Management and Tax Preparation. The Wealth Management segment offers an integrated platform of brokerage, investment advisory, and insurance services to financial advisors. The Tax Preparation segment provides digital do-it-yourself tax preparation solutions for consumers and small business owners through TaxAct.com; and ancillary services, including refund payment transfer, audit defense, stored value cards, retirement investment accounts, tax preparation support services, data archive services, and e-filing services. This segment also offers professional tax preparer software. The company was formerly known as InfoSpace, Inc. and changed its name to Blucora, Inc. in June 2012. Blucora, Inc. was founded in 1996 and is headquartered in Irving, Texas.
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