Financial Contrast: Runway Growth Finance (NASDAQ:RWAY) and Abits Group (NASDAQ:ABTS)

Abits Group (NASDAQ:ABTS) and Runway Growth Finance (NASDAQ:RWAY) are both small-cap business services companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, earnings, analyst recommendations, risk, valuation, dividends and institutional ownership.

Analyst Recommendations

This is a breakdown of recent recommendations for Abits Group and Runway Growth Finance, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Abits Group	0	0	0	0	0.00
Runway Growth Finance	0	6	2	0	2.25

Runway Growth Finance has a consensus target price of $11.79, indicating a potential upside of 15.15%. Given Runway Growth Finance’s stronger consensus rating and higher probable upside, analysts clearly believe Runway Growth Finance is more favorable than Abits Group.

Valuation and Earnings

This table compares Abits Group and Runway Growth Finance”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Abits Group	$1.68 million	11.90	-$12.59 million	N/A	N/A
Runway Growth Finance	$164.21 million	2.33	$44.34 million	$1.04	9.85

Runway Growth Finance has higher revenue and earnings than Abits Group.

Profitability

This table compares Abits Group and Runway Growth Finance’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Abits Group	N/A	N/A	N/A
Runway Growth Finance	27.05%	12.91%	6.33%

Risk & Volatility

Abits Group has a beta of 2.68, meaning that its share price is 168% more volatile than the S&P 500. Comparatively, Runway Growth Finance has a beta of 0.58, meaning that its share price is 42% less volatile than the S&P 500.

Insider & Institutional Ownership

0.2% of Abits Group shares are owned by institutional investors. Comparatively, 64.6% of Runway Growth Finance shares are owned by institutional investors. 6.7% of Abits Group shares are owned by company insiders. Comparatively, 1.5% of Runway Growth Finance shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Runway Growth Finance beats Abits Group on 9 of the 12 factors compared between the two stocks.

About Abits Group

Abits Group Inc. operates in the bitcoin mining business in the United States. The company was formerly known as Moxian (BVI) Inc and changed its name to Abits Group Inc. in November 2023. Abits Group Inc. was incorporated in 2021 and is based in Causeway Bay, Hong Kong.

About Runway Growth Finance

Runway Growth Finance Corp. is a business development company specializing investments in senior-secured loans to late stage and growth companies. It prefers to make investments in companies engaged in the technology, life sciences, healthcare and information services, business services and select consumer services and products sectors. It prefers to investments in companies engaged in electronic equipment and instruments, systems software, hardware, storage and peripherals and specialized consumer services, application software, healthcare technology, internet software and services, data processing and outsourced services, internet retail, human resources and employment services, biotechnology, healthcare equipment and education services. It invests in senior secured loans between $10 million and $75 million.