Scully Royalty (NYSE:SRL) vs. Addentax Group (NASDAQ:ATXG) Critical Analysis

Scully Royalty (NYSE:SRL) and Addentax Group (NASDAQ:ATXG) are both small-cap multi-sector conglomerates companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, institutional ownership, risk, valuation, earnings, profitability and analyst recommendations.

Valuation & Earnings

This table compares Scully Royalty and Addentax Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Scully Royalty	$25.77 million	3.38	-$15.02 million	N/A	N/A
Addentax Group	$4.18 million	2.89	-$5.09 million	($0.70)	-1.47

Addentax Group has lower revenue, but higher earnings than Scully Royalty.

Institutional & Insider Ownership

42.0% of Scully Royalty shares are held by institutional investors. Comparatively, 10.1% of Addentax Group shares are held by institutional investors. 1.9% of Scully Royalty shares are held by insiders. Comparatively, 4.9% of Addentax Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Scully Royalty and Addentax Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Scully Royalty	N/A	N/A	N/A
Addentax Group	-98.96%	-17.87%	-8.60%

Analyst Recommendations

This is a summary of recent ratings and target prices for Scully Royalty and Addentax Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Scully Royalty	1	0	0	0	1.00
Addentax Group	1	0	0	0	1.00

Risk and Volatility

Scully Royalty has a beta of 0.7, meaning that its share price is 30% less volatile than the S&P 500. Comparatively, Addentax Group has a beta of 0.97, meaning that its share price is 3% less volatile than the S&P 500.

Summary

Scully Royalty beats Addentax Group on 6 of the 9 factors compared between the two stocks.

About Scully Royalty

Scully Royalty Ltd. operates as an iron ore mining company in the Americas, Africa, Canada, Asia, and Europe. It operates through three segments: Royalty, Industrial, and Merchant Banking. The company holds royalty interest in the Scully iron ore mine located in the Province of Newfoundland and Labrador, Canada. It also engages in manufacturing, and medical supplies and services industries. In addition, the company offers merchant banking and financial services to small and medium sized enterprises; operates projects in resources and services; and holds two industrial real estate parks. Scully Royalty Ltd. was formerly known as MFC Bancorp Ltd. and changed its name to Scully Royalty Ltd. in June 2019. The company was incorporated in 2017 and is based in Shanghai, the People's Republic of China.

About Addentax Group

Addentax Group Corp., together with its subsidiaries, operates as a logistic service provider in China. It operates through three segments: Garment Manufacturing, Logistics Services, and Property Management and Subleasing. The company manufactures and distributes garments; and provides logistic services, such as storage, transportation, warehousing, handling, packaging, and order processing, as well as customs declaration and tax clearance services. It also offers shop subleasing and property management services for garment wholesalers and retailers in the garment market. In addition, the company engages in the building decoration designing business. Addentax Group Corp. is based in Shenzhen, China.