Rand Capital (NASDAQ:RAND – Get Free Report) and Invent Ventures (OTCMKTS:IDEA – Get Free Report) are both small-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, profitability, valuation, institutional ownership, risk, earnings and analyst recommendations.
Analyst Recommendations
This is a breakdown of current recommendations for Rand Capital and Invent Ventures, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Rand Capital | 1 | 0 | 0 | 0 | 1.00 |
| Invent Ventures | 0 | 0 | 0 | 0 | 0.00 |
Risk and Volatility
Rand Capital has a beta of 0.2, indicating that its share price is 80% less volatile than the S&P 500. Comparatively, Invent Ventures has a beta of -56.24, indicating that its share price is 5,724% less volatile than the S&P 500.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Rand Capital | -164.74% | 7.12% | 6.80% |
| Invent Ventures | 27.92% | N/A | N/A |
Earnings & Valuation
This table compares Rand Capital and Invent Ventures”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Rand Capital | $8.56 million | 4.07 | $8.83 million | ($4.20) | -2.79 |
| Invent Ventures | $790,000.00 | 1.92 | $710,000.00 | N/A | N/A |
Rand Capital has higher revenue and earnings than Invent Ventures.
Summary
Rand Capital beats Invent Ventures on 7 of the 8 factors compared between the two stocks.
About Rand Capital
Rand Capital Corporation is a business development company specializing in subordinated debt with warrants or preferred equity and venture capital investments. Within private equity, the firm specializing in capital growth and lower middle market investments. Within venture capital, it specializing in early to late-stage private businesses. It does not prefer to invest in real estate sector. It prefers to invest in software, professional services, manufacturing, consumer, healthcare, automotive and public d stocks. It prefers to invest in East or Midwest U.S. operations sectors. It typically invests between $0.75 million and $5 million with initial target size of $1.5 million. It seeks to invest in companies having more than $2 million in revenue or having excess of $1.5 million and up to $5 million in EBITDA. It prefers to be a minority stake and seeks to take a Board seat in its portfolio companies. It typically holds its investments for a period up to five years.
About Invent Ventures
Invent Ventures, Inc., formerly known as Los Angeles Syndicate of Technology, Inc., is venture capital firm specializing in incubation, seed, start ups, growth capital, and early stage investments. The firm prefers to invest in technology companies including web-based software, digital media, mobile applications, social media, consumer internet, online advertising and healthcare technology . It prefers to invest in the Los Angeles area of United States. The firm seeks to invest up to $0.25 million. Invent Ventures, Inc. was founded on August 18, 2005 and is based in Santa Monica, California.
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