Contrasting Neon Bloom (OTCMKTS:NBCO) and Forge Global (NYSE:FRGE)

Forge Global (NYSE:FRGE) and Neon Bloom (OTCMKTS:NBCO) are both small-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, valuation, analyst recommendations, risk, dividends, profitability and institutional ownership.

Valuation and Earnings

This table compares Forge Global and Neon Bloom”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Forge Global	$79.33 million	7.79	-$66.33 million	($5.20)	-8.58
Neon Bloom	$32.13 million	0.11	N/A	N/A	N/A

Neon Bloom has lower revenue, but higher earnings than Forge Global.

Profitability

This table compares Forge Global and Neon Bloom’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Forge Global	-71.87%	-29.06%	-24.63%
Neon Bloom	N/A	N/A	N/A

Risk and Volatility

Forge Global has a beta of 2.18, indicating that its stock price is 118% more volatile than the S&P 500. Comparatively, Neon Bloom has a beta of 0.32, indicating that its stock price is 68% less volatile than the S&P 500.

Insider and Institutional Ownership

40.7% of Forge Global shares are held by institutional investors. 4.5% of Forge Global shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current recommendations for Forge Global and Neon Bloom, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Forge Global	1	5	1	0	2.00
Neon Bloom	0	0	0	0	0.00

Forge Global currently has a consensus price target of $42.00, indicating a potential downside of 5.90%. Given Forge Global’s stronger consensus rating and higher possible upside, equities analysts plainly believe Forge Global is more favorable than Neon Bloom.

Summary

Forge Global beats Neon Bloom on 8 of the 11 factors compared between the two stocks.

About Forge Global

Forge Global Holdings, Inc. operates a financial services platform in California. The company's platform solutions include trading solutions, a platform that connects investors with private company stockholders and enables them to facilitate private share transactions; and custody solutions, a non-depository trust company that enables clients to securely custody and manage assets through an online portal. It also provides data solutions, such as information and insight to navigate, analyze, and make investment decisions to market participants in the private market. The company was founded in 2014 and is headquartered in San Francisco, California.

About Neon Bloom

Neon Bloom, Inc. is a principal investment firm specializing in acquisitions. The firm primarily invests in innovative agriculture and ancillary technology products and services across the globe. Neon Bloom, Inc was founded in 2015 and is based in New York, New York.