Financial Analysis: SHF (NASDAQ:SHFS) & Mentor Capital (OTCMKTS:MNTR)

Mentor Capital (OTCMKTS:MNTR) and SHF (NASDAQ:SHFS) are both small-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, profitability, risk, institutional ownership, dividends, valuation and earnings.

Risk & Volatility

Mentor Capital has a beta of -0.76, indicating that its share price is 176% less volatile than the S&P 500. Comparatively, SHF has a beta of 0.9, indicating that its share price is 10% less volatile than the S&P 500.

Valuation and Earnings

This table compares Mentor Capital and SHF”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mentor Capital	N/A	N/A	-$840,000.00	($0.02)	-4.38
SHF	$15.24 million	0.19	-$48.32 million	($1.23)	-0.76

Mentor Capital has higher earnings, but lower revenue than SHF. Mentor Capital is trading at a lower price-to-earnings ratio than SHF, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Mentor Capital and SHF’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mentor Capital	N/A	-17.94%	-14.89%
SHF	-568.23%	N/A	-560.90%

Analyst Recommendations

This is a breakdown of current ratings and price targets for Mentor Capital and SHF, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mentor Capital	0	0	0	0	0.00
SHF	1	0	0	0	1.00

Insider & Institutional Ownership

29.2% of SHF shares are owned by institutional investors. 23.7% of Mentor Capital shares are owned by insiders. Comparatively, 11.8% of SHF shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

SHF beats Mentor Capital on 6 of the 11 factors compared between the two stocks.

About Mentor Capital

Mentor Capital, Inc. is a private equity firm specializing in acquisitions and emerging growth investments. The firm provides passive equity funding and liquidity to smaller companies and owners in the medical, marijuana and social use cannabis companies. It invests in shelf IPO’s and public and private companies and seeks to provide public market access to owners of small private companies. The firm specializes in pre-IPO investments in Cannabis companies. It seeks to invest in energy sector of oil and gas, coal, uranium. In case of shelf IPO’s, the firm prefers to invest in companies with sales greater than $40 million. It prefers to take significant position in its portfolio companies. The firm invests only in companies that have earnings. Mentor Capital, Inc. was founded in 1985 and is based in Plano, Texas.

About SHF

SHF Holdings, Inc., through its subsidiaries, provides access to banking, lending, and other financial services to financial institutions serving the cannabis industry. The company, through its proprietary platform, offers access to business checking and savings accounts, cash management accounts, savings and investment options, commercial lending, courier services, remote deposit services, automated clearing house payments and origination, and wire payments. Its services allow cannabis related businesses to obtain services from financial institutions that allow them to run their business with enhanced financial insight into their business and access to resources. The company was founded in 2015 and is based in Golden, Colorado. SHF Holdings, Inc. operates as a subsidiary of Partner Colorado Credit Union.