Reviewing Silvercrest Asset Management Group (NASDAQ:SAMG) and Royalty Management (NASDAQ:RMCO)

Royalty Management (NASDAQ:RMCO) and Silvercrest Asset Management Group (NASDAQ:SAMG) are both small-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, institutional ownership, analyst recommendations, dividends, profitability, risk and earnings.

Profitability

This table compares Royalty Management and Silvercrest Asset Management Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Royalty Management	-9.22%	-2.94%	-2.13%
Silvercrest Asset Management Group	5.28%	11.56%	7.47%

Insider and Institutional Ownership

67.2% of Royalty Management shares are owned by institutional investors. Comparatively, 47.6% of Silvercrest Asset Management Group shares are owned by institutional investors. 57.1% of Royalty Management shares are owned by insiders. Comparatively, 20.4% of Silvercrest Asset Management Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Volatility & Risk

Royalty Management has a beta of -0.04, meaning that its stock price is 104% less volatile than the S&P 500. Comparatively, Silvercrest Asset Management Group has a beta of 0.7, meaning that its stock price is 30% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations for Royalty Management and Silvercrest Asset Management Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Royalty Management	1	1	1	0	2.00
Silvercrest Asset Management Group	0	2	0	0	2.00

Valuation and Earnings

This table compares Royalty Management and Silvercrest Asset Management Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Royalty Management	$810,000.00	54.77	-$110,000.00	($0.01)	-293.00
Silvercrest Asset Management Group	$123.65 million	1.50	$9.53 million	$0.71	21.31

Silvercrest Asset Management Group has higher revenue and earnings than Royalty Management. Royalty Management is trading at a lower price-to-earnings ratio than Silvercrest Asset Management Group, indicating that it is currently the more affordable of the two stocks.

Dividends

Royalty Management pays an annual dividend of $0.01 per share and has a dividend yield of 0.3%. Silvercrest Asset Management Group pays an annual dividend of $0.84 per share and has a dividend yield of 5.6%. Royalty Management pays out -100.0% of its earnings in the form of a dividend. Silvercrest Asset Management Group pays out 118.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Silvercrest Asset Management Group has raised its dividend for 1 consecutive years. Silvercrest Asset Management Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Silvercrest Asset Management Group beats Royalty Management on 10 of the 15 factors compared between the two stocks.

About Royalty Management

Royalty Management Holding Corporation provides environmental consulting and services in the United States. It is also involved in investing or purchasing assets, such as real estate and mining permits, patents, intellectual property, and emerging technologies. The company was incorporated in 2021 and is based in Fishers, Indiana.

About Silvercrest Asset Management Group

Silvercrest Asset Management Group Inc., a wealth management firm, provides financial advisory and related family office services in the United States. The company serves ultra-high net worth individuals and families, as well as their trusts; endowments; foundations; and other institutional investors. It also manages funds of funds and other investment funds. The company was founded in 2002 and is headquartered in New York, New York.