Contrasting Heritage Global (NASDAQ:HGBL) and Kuboo (OTCMKTS:SGTB)

Heritage Global (NASDAQ:HGBLGet Rating) and Kuboo (OTCMKTS:SGTBGet Rating) 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, profitability, valuation, institutional ownership, analyst recommendations, risk and dividends.

Insider & Institutional Ownership

17.4% of Heritage Global shares are held by institutional investors. 11.0% of Heritage Global shares are held by company insiders. Comparatively, 8.6% of Kuboo shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Risk and Volatility

Heritage Global has a beta of 1.54, meaning that its stock price is 54% more volatile than the S&P 500. Comparatively, Kuboo has a beta of -0.54, meaning that its stock price is 154% less volatile than the S&P 500.

Earnings and Valuation

This table compares Heritage Global and Kuboo’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Heritage Global $25.79 million 1.78 $3.05 million $0.08 15.63
Kuboo N/A N/A N/A N/A N/A

Heritage Global has higher revenue and earnings than Kuboo.

Profitability

This table compares Heritage Global and Kuboo’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Heritage Global 9.51% 8.30% 5.59%
Kuboo N/A N/A N/A

Analyst Recommendations

This is a summary of current recommendations and price targets for Heritage Global and Kuboo, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Heritage Global 0 0 2 0 3.00
Kuboo 0 0 0 0 N/A

Heritage Global currently has a consensus price target of $4.00, indicating a potential upside of 220.00%. Given Heritage Global’s higher probable upside, equities analysts clearly believe Heritage Global is more favorable than Kuboo.

Summary

Heritage Global beats Kuboo on 9 of the 9 factors compared between the two stocks.

About Heritage Global (Get Rating)

Heritage Global, Inc., together with its subsidiaries, operates as an asset services company with focus on financial and industrial asset transactions. The company provides market making, acquisitions, dispositions, valuations, and secured lending services. It focuses on identifying, valuing, acquiring, and monetizing underlying tangible and intangible assets. Heritage Global Inc. acts as an adviser, as well as a principal, acquiring, or brokering manufacturing facilities; surplus industrial machinery and equipment; industrial inventories; accounts receivable portfolios; intellectual property; and business enterprises. The company was formerly known as Counsel RB Capital Inc. and changed its name to Heritage Global, Inc. in August 2013. Heritage Global, Inc. was incorporated in 1983 and is headquartered in San Diego, California.

About Kuboo (Get Rating)

Kuboo, Inc., doing business as Safe Communications, Inc., provides open and secure family communications. It operates a child safe virtual world that offers games, edutainment, controlled chat, and multiple channels online streaming in one platform. The company was founded in 2004 and is based in Scottsdale, Arizona.

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