Critical Contrast: Heritage Global (NASDAQ:HGBL) and Lichen International (NASDAQ:LICN)

Lichen International (NASDAQ:LICN) and Heritage Global (NASDAQ:HGBL) are both small-cap finance companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, risk, profitability, dividends, valuation, institutional ownership and earnings.

Earnings and Valuation

This table compares Lichen International and Heritage Global”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lichen International	$41.48 million	0.05	-$6.14 million	N/A	N/A
Heritage Global	$45.36 million	1.03	$5.18 million	$0.09	15.00

Heritage Global has higher revenue and earnings than Lichen International.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Lichen International and Heritage Global, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lichen International	1	0	0	0	1.00
Heritage Global	1	1	1	1	2.50

Heritage Global has a consensus price target of $4.00, suggesting a potential upside of 196.30%. Given Heritage Global’s stronger consensus rating and higher probable upside, analysts clearly believe Heritage Global is more favorable than Lichen International.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Lichen International	N/A	N/A	N/A
Heritage Global	6.18%	4.69%	3.60%

Institutional & Insider Ownership

33.5% of Heritage Global shares are held by institutional investors. 14.0% of Heritage Global shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Risk & Volatility

Lichen International has a beta of 1.17, meaning that its share price is 17% more volatile than the S&P 500. Comparatively, Heritage Global has a beta of 0.62, meaning that its share price is 38% less volatile than the S&P 500.

Summary

Heritage Global beats Lichen International on 12 of the 13 factors compared between the two stocks.

About Lichen International

Lichen China Limited, together with its subsidiaries, operates as an investment holding company, provides financial and taxation, education support, and software and maintenance services in the People's Republic of China and internationally. The company offers financial and taxation related management consultation, internal control management consultation, annual or regular consultation, and internal training and general consultation services; and education support services, including marketing, operational, and technical support, as well as sells teaching and learning materials. It also provides Lichen Education Accounting Practice System V1.0, a financial and taxation training software, and academic affairs management system to partnered institutions under the partnership agreements, as well as offers software installation, training, and after sales technical and maintenance support services. Lichen China Limited was founded in 2004 and is based in Jinjiang, China.

About Heritage Global

Heritage Global Inc., together with its subsidiaries, operates as an asset services company with focus on financial and industrial asset transactions. The company operates in three segments: Auction and Liquidation, Refurbishment & Resale, and Brokerage. It provides a suite of market making, acquisitions, refurbishment, dispositions, valuations, and secured lending services. The company focuses on identifying, valuing, acquiring, and monetizing underlying tangible assets. It acts as an adviser, as well as a principal, acquiring, or brokering manufacturing facilities; surplus industrial machinery and equipment; industrial inventories; and charged-off receivable portfolios. 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 founded in 1937 and is headquartered in San Diego, California.