DIGIPATH INC/SH SH (OTCMKTS:DIGP) and Blackrock Capital Investment (NASDAQ:BKCC) are both small-cap medical companies, but which is the better investment? We will compare the two companies based on the strength of their risk, dividends, earnings, profitability, valuation, analyst recommendations and institutional ownership.
Institutional & Insider Ownership
0.5% of DIGIPATH INC/SH SH shares are owned by institutional investors. Comparatively, 34.1% of Blackrock Capital Investment shares are owned by institutional investors. 1.3% of Blackrock Capital Investment shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Valuation & Earnings
This table compares DIGIPATH INC/SH SH and Blackrock Capital Investment’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|DIGIPATH INC/SH SH||$1.90 million||3.20||-$1.06 million||N/A||N/A|
|Blackrock Capital Investment||$97.33 million||4.14||$20.90 million||$0.73||7.92|
Blackrock Capital Investment has higher revenue and earnings than DIGIPATH INC/SH SH.
This is a breakdown of recent ratings and target prices for DIGIPATH INC/SH SH and Blackrock Capital Investment, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|DIGIPATH INC/SH SH||0||0||0||0||N/A|
|Blackrock Capital Investment||0||2||0||0||2.00|
Blackrock Capital Investment has a consensus price target of $6.00, suggesting a potential upside of 3.81%. Given Blackrock Capital Investment’s higher probable upside, analysts plainly believe Blackrock Capital Investment is more favorable than DIGIPATH INC/SH SH.
Blackrock Capital Investment pays an annual dividend of $0.72 per share and has a dividend yield of 12.5%. DIGIPATH INC/SH SH does not pay a dividend. Blackrock Capital Investment pays out 98.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
This table compares DIGIPATH INC/SH SH and Blackrock Capital Investment’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|DIGIPATH INC/SH SH||-59.66%||-120.14%||-103.12%|
|Blackrock Capital Investment||30.39%||9.10%||6.11%|
Volatility and Risk
DIGIPATH INC/SH SH has a beta of 2.7, suggesting that its stock price is 170% more volatile than the S&P 500. Comparatively, Blackrock Capital Investment has a beta of 0.63, suggesting that its stock price is 37% less volatile than the S&P 500.
Blackrock Capital Investment beats DIGIPATH INC/SH SH on 10 of the 12 factors compared between the two stocks.
DIGIPATH INC/SH SH Company Profile
Digipath, Inc., together with its subsidiaries, provides cannabis related testing services in the United States. The company offers cannabis lab testing services in Las Vegas to Nevada licensed medical marijuana enterprises. It also provides a balanced and unbiased approach to cannabis news, interviews, and education with a news/talk radio show, app, national marijuana news Website, and social media presence focusing on the political, economic, medicinal, scientific, and cultural dimensions of medicinal and recreational marijuana industry. DigiPath, Inc. was incorporated in 2010 and is headquartered in Las Vegas, Nevada.
Blackrock Capital Investment Company Profile
BlackRock Capital Investment Corporation, formerly known as BlackRock Kelso Capital Corporation, is a Business Development Company specializing in investments in middle market companies. The fund invests in all industries. It prefers to invest between $10 million and $50 million and can invest more or less in companies with EBITDA or operating cash flow between $10 million and $50 million. The fund invests in the form of senior and junior secured, unsecured, and subordinated debt securities and loans including cash flow, asset backed, and junior lien facilities and equity securities. It's equity investments can be structured in the form of warrants, preferred stock, common equity co-investments, and direct investments in common stock. The fund's debt investments are principally structured to provide for current cash interest and to a lesser extent non-cash interest, particularly with subordinated debt investments, through a pay-in-kind (PIK) feature. It can also make non-control investments.
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