Hercules Capital (NYSE:HTGC – Get Rating) and Boulder Growth & Income Fund (NYSE:BIF – Get Rating) are both finance companies, but which is the best investment? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, risk, earnings and valuation.
This is a breakdown of recent ratings and price targets for Hercules Capital and Boulder Growth & Income Fund, as reported by MarketBeat.com.
|Sales Ratings||Hold odds||Buy reviews||Strong buy odds||Rating|
|Capital of Hercules||0||2||4||0||2.67|
|Boulder Growth & Income Fund||0||0||0||0||N / A|
Hercules Capital currently has a consensus target price of $18.54, indicating a potential downside of 0.26%. Given Hercules Capital’s possible higher upside, stock analysts clearly believe that Hercules Capital is more favorable than Boulder Growth & Income Fund.
Hercules Capital pays an annual dividend of $1.32 per share and has a dividend yield of 7.1%. The Boulder Growth & Income Fund pays an annual dividend of $0.43 per share and has a dividend yield of 2.9%. Hercules Capital pays 92.3% of its earnings as a dividend, suggesting that it may not have enough earnings to cover its dividend payment in the future. Hercules Capital increased its dividend for 1 consecutive year and Boulder Growth & Income Fund increased its dividend for 1 consecutive year.
Institutional and Insider Ownership
26.7% of Hercules Capital shares are held by institutional investors. By comparison, 11.8% of shares in the Boulder Growth & Income Fund are held by institutional investors. 3.3% of Hercules Capital shares are held by company insiders. By comparison, 0.2% of Boulder Growth & Income Fund shares are held by insiders of the company. Strong institutional ownership indicates that large fund managers, hedge funds, and endowments believe a stock is poised for long-term growth.
Risk and Volatility
Hercules Capital has a beta of 1.4, meaning its stock price is 40% more volatile than the S&P 500. In comparison, Boulder Growth & Income Fund has a beta of 0.85, meaning its stock price of its stock is 15% less volatile than the S&P 500. .
This table compares the net margins, return on equity and return on assets of Hercules Capital and Boulder Growth & Income Fund.
|Net margins||Return on equity||return on assets|
|Capital of Hercules||61.98%||11.28%||5.68%|
|Boulder Growth & Income Fund||N / A||N / A||N / A|
Valuation and benefits
This table compares the revenue, earnings per share (EPS) and valuation of Hercules Capital and Boulder Growth & Income Fund.
|Gross revenue||Price/sales ratio||Net revenue||Earnings per share||Price/earnings ratio|
|Capital of Hercules||$280.98 million||7.92||$174.15 million||$1.43||1:00 p.m.|
|Boulder Growth & Income Fund||N / A||N / A||N / A||N / A||N / A|
Hercules Capital has higher income and earnings than Boulder Growth & Income Fund.
Hercules Capital beats Boulder Growth & Income Fund on 10 of the 11 factors compared between the two stocks.
Hercules Capital company profile (Get a rating)
Hercules Capital, Inc. is a business development company. The company specializing in providing venture capital debt, debt, senior secured loans and growth capital to private venture capital-backed companies at all stages of development, from startups to the early stage. expansion, including some publicly traded companies and some special opportunities from lower-middle-market companies that need additional capital to fund acquisitions, recapitalizations and refinancing of early-stage companies. The company provides growth capital financing solutions for capital extension; management buy-out and company spin-out financing solutions; corporate, specific asset or intellectual property acquisition financing; convertible, subordinated and/or mezzanine loans; national and international expansion of the company; vendor financing; revenue acceleration through sales and marketing development and manufacturing expansion. It provides asset-based financing with an emphasis on cash flow; accounts receivable facilities; equipment loans or rentals; acquisition of equipment; construction and/or expansion of facilities; revolving working capital lines of credit; inventory. The company also provides bridge financing for IPO or M&A or technology acquisition; dividend recapitalizations and other sources of liquidity for investors; cash flow financing to hedge against share price volatility; acquisition of competitors; pre-IPO financing for additional liquidity on the balance sheet; financing of public enterprises to pursue the growth of assets and production capacity; short-term bridging financing; and financing of strategic acquisitions and intellectual property. It also focuses on tailored financing solutions, emerging growth, midstream venture capital and late venture capital financing. The company invests mainly in structured debt with warrants and, to a lesser extent, in senior debt and equity investments. The Company generally seeks to invest in companies that have been in business for at least six to twelve months prior to the date of their investment. He prefers to invest in technology, energy technologies, sustainable and renewable technologies and life sciences. In technology, the company focuses on advanced materials and specialty chemicals; communication and networking, consumer and commercial products; consumer products and services, digital media and consumer Internet; electronic and computer equipment; business software and services; games; health services; information services; business services; media, content and information; portable; resource management; security software; semiconductors; semiconductors and hardware; and the software industry. In the field of energy technologies, it invests in agriculture; clean technology; energy and renewable technologies, fuels and energy technologies; geothermal; smart grids and energy efficiency and monitoring technologies; solar; and the wind. Within life sciences, the company invests in biopharmaceuticals; biotechnology tools; Diagnostic; drug discovery, development and delivery; medical apparatus and equipment; surgical apparatus; therapeutic; pharmaceutical services; and specialty pharmaceuticals. It also invests in educational services. The Company invests primarily in US-based companies and plans to invest in the West Coast, Mid-Atlantic, Southeast and Mid-West regions; particularly in the fields of software, biotechnology and information services. The company prefers to invest between $10 million and $250 million in equity per transaction. It typically invests between $1 million and $40 million in companies primarily focused on business services, communications, electronics, hardware, and healthcare services. The company mainly invests in private companies, but also has investments in public companies. For equity investments, the company seeks to represent a majority stake in the companies in its portfolio which may exceed 25% of the voting securities of these companies. The company seeks to invest a limited portion of its assets in equipment-based loans to potential early-stage portfolio companies. These loans are generally for a maximum amount of $3 million, but can reach $15 million for certain risky energy technology investments. The company allows certain debt investments to have the right to convert a portion of the debt investment into equity. It also co-invests with other private equity firms. The company is seeking to exit its investments through an initial public offering, private sale of equity to a third party, merger or acquisition of the company or purchase of the equity by the company or one of its shareholders. The company has structured debt with warrants that typically have maturities between two and seven years with an average of three years; senior debt with an investment horizon of less than three years; equipment loans with an investment horizon of three to four years; and equity-like securities with an investment horizon ranging from three to seven years. The company prefers to invest through its balance sheet capital. The company formerly known as Hercules Technology Growth Capital, Inc. Hercules Capital, Inc. was founded in December 2003 and is based in Palo Alto, California, with additional offices in Connecticut; Boston, MA; San Diego, California; Westport, Connecticut; Elmhurst, Ill.; Santa Monica, California; McLean, Virginia; New York, New York; Radnor, Pennsylvania; and Washington, District of Columbia.
Boulder Growth & Income Fund Company Profile (Get a rating)
Boulder Growth & Income Fund, Inc. operates as a non-diversified closed-end management company. It invests primarily in domestic common stocks, warrants, corporate bonds, US Treasury bills and repurchase agreements. The Company seeks to generate both income and long-term capital appreciation by investing in a portfolio of equity and debt securities. Boulder Growth & Income Fund is headquartered in Denver, CO.
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