Contrasting TROOPS (NASDAQ:TROO) & SWK (NASDAQ:SWKH)

SWK (NASDAQ:SWKH) and TROOPS (NASDAQ:TROO) are both finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, institutional ownership, dividends, profitability, analyst recommendations, earnings and valuation.

Earnings & Valuation

This table compares SWK and TROOPS’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SWK	$37.76 million	5.78	$15.89 million	$1.26	13.87
TROOPS	$3.57 million	N/A	-$1.72 million	N/A	N/A

SWK has higher revenue and earnings than TROOPS.

Profitability

This table compares SWK and TROOPS’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SWK	42.07%	6.67%	5.94%
TROOPS	N/A	N/A	N/A

Risk and Volatility

SWK has a beta of 0.33, meaning that its share price is 67% less volatile than the S&P 500. Comparatively, TROOPS has a beta of 1.42, meaning that its share price is 42% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings for SWK and TROOPS, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SWK	0	0	0	0	N/A
TROOPS	0	0	0	0	N/A

Insider and Institutional Ownership

99.3% of SWK shares are owned by institutional investors. 1.4% of SWK shares are owned by insiders. Comparatively, 1.1% of TROOPS shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

SWK beats TROOPS on 7 of the 8 factors compared between the two stocks.

About SWK

SWK Holdings Corporation, offers specialty finance and asset management services in the United States. It operates in two segments, Finance Receivables and Pharmaceutical Development. The Finance Receivables segment provides customized financing solutions to a range of life science companies, including companies in the biotechnology, medical device, medical diagnostics and related tools, animal health, and pharmaceutical industries, as well as institutions and inventors. This segment also offers non-discretionary investment advisory services to institutional clients in separately managed accounts to invest in life science finance. The Pharmaceutical Development segment provides customers pharmaceutical development, formulation, and manufacturing services, as well as formulation solutions built around its proprietary oral drug delivery technologies, the Peptelligence platform. It also offers intellectual property licensing business. The company was formerly known as Kana Software, Inc. and changed its name to SWK Holdings Corporation in December 2009. SWK Holdings Corporation was incorporated in 1996 and is headquartered in Dallas, Texas.

About TROOPS

TROOPS, Inc., together with its subsidiaries, engages in the money lending business in Hong Kong and Australia. The company provides mortgage, personal, and corporate loans; operates online financial marketplace through a platform for money lending, system integration, and consultation services; and invests in real estate properties in Hong Kong. It also offers fintech and IT support services, which includes artificial intelligence, big data and blockchain technology, machine learning, fingerprint ID, facial recognition, and cloud computing, and GFS strives; and engages in property leasing and management services. The company was formerly known as SGOCO Group, Ltd. and changed its name to TROOPS, Inc. in November 2021. TROOPS, Inc. was founded in 2005 and is headquartered in Tsuen Wan, Hong Kong.