AMTD Digital (NYSE:HKD) and Sprott (NYSE:SII) Critical Analysis

AMTD Digital (NYSE:HKD) and Sprott (NYSE:SII) are both small-cap business services companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, profitability, institutional ownership, earnings, valuation, dividends and analyst recommendations.

Risk and Volatility

AMTD Digital has a beta of 2.03, suggesting that its stock price is 103% more volatile than the S&P 500. Comparatively, Sprott has a beta of 0.98, suggesting that its stock price is 2% less volatile than the S&P 500.

Insider and Institutional Ownership

5.8% of AMTD Digital shares are owned by institutional investors. Comparatively, 28.3% of Sprott shares are owned by institutional investors. 18.3% of Sprott 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.

Profitability

This table compares AMTD Digital and Sprott’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AMTD Digital	N/A	N/A	N/A
Sprott	27.38%	15.02%	11.91%

Earnings & Valuation

This table compares AMTD Digital and Sprott”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AMTD Digital	$23.45 million	22.06	$41.74 million	N/A	N/A
Sprott	$170.57 million	9.37	$41.80 million	$1.92	32.26

Sprott has higher revenue and earnings than AMTD Digital.

Analyst Recommendations

This is a summary of recent ratings and price targets for AMTD Digital and Sprott, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AMTD Digital	0	0	0	0	0.00
Sprott	0	0	2	0	3.00

Summary

Sprott beats AMTD Digital on 9 of the 11 factors compared between the two stocks.

About AMTD Digital

AMTD Digital Inc., through its subsidiaries, designs and develops a digital platform to provide financial, media, content and marketing, and investment solutions in Asia. The company operates through Digital Solutions ServicesFinancial Services, Digital Solutions ServicesNon Financial Services, Digital Media, Content, and Marketing Services, and Digital Investments segments. It offers deposit, personal loan, credit card, fund transfer, cross border remittance, insurance, and other payment services. In addition, the company operates SpiderNet ecosystem, a platform to enhance their investor communication, investor relations, and corporate communication to enhance their valuation. Further, it offers movies, podcasts, webinars, and videos through online media platforms. Additionally, the company invests in hotel related activities. AMTD Digital Inc. was incorporated in 2019 and is based in Paris, France. AMTD Digital Inc. operates as a subsidiary of AMTD IDEA Group.

About Sprott

Sprott Inc. is a publicly owned asset management holding company. Through its subsidiaries, the firm provides asset management, portfolio management, wealth management, fund management, and administrative and consulting services to its clients. It offers mutual funds, hedge funds, and offshore funds, along with managed accounts. Further, the firm also provides broker-dealer activities. Sprott Inc. was formed on February 13, 2008 and is based in Toronto, Canada.