Financial Analysis: Sprott (NYSE:SII) vs. SHF (NASDAQ:SHFS)

SHF (NASDAQ:SHFS) and Sprott (NYSE:SII) are both small-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, valuation, profitability, earnings, analyst recommendations, institutional ownership and dividends.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
SHF	-79.25%	-50.38%	-22.61%
Sprott	28.76%	15.15%	11.98%

Institutional and Insider Ownership

29.2% of SHF shares are held by institutional investors. Comparatively, 28.3% of Sprott shares are held by institutional investors. 60.5% of SHF shares are held by company insiders. Comparatively, 18.3% of Sprott shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation and Earnings

This table compares SHF and Sprott’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SHF	$20.72 million	1.41	-$17.28 million	($0.28)	-1.88
Sprott	$169.02 million	6.52	$41.80 million	$1.79	23.80

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

Volatility & Risk

SHF has a beta of 0.16, indicating that its share price is 84% less volatile than the S&P 500. Comparatively, Sprott has a beta of 1.11, indicating that its share price is 11% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations for SHF and Sprott, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SHF	0	0	0	0	N/A
Sprott	0	0	0	1	4.00

Summary

Sprott beats SHF on 10 of the 12 factors compared between the two stocks.

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.

About Sprott

Sprott Inc. is a publicly owned asset management holding company. Through its subsidiaries, the firm provides asset management, portfolio management, wealth management, fund management, and administrative and consulting services to its clients. It offers mutual funds, hedge funds, and offshore funds, along with managed accounts. Further, the firm also provides broker-dealer activities. Sprott Inc. was formed on February 13, 2008 and is based in Toronto, Canada.