Critical Analysis: Binah Capital Group (NASDAQ:BCG) vs. U.S. Global Investors (NASDAQ:GROW)

U.S. Global Investors (NASDAQ:GROW) and Binah Capital Group (NASDAQ:BCG) are both small-cap finance companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, valuation, profitability, dividends, earnings, institutional ownership and risk.

Volatility & Risk

U.S. Global Investors has a beta of 0.63, suggesting that its stock price is 37% less volatile than the S&P 500. Comparatively, Binah Capital Group has a beta of 0.33, suggesting that its stock price is 67% less volatile than the S&P 500.

Institutional and Insider Ownership

23.6% of U.S. Global Investors shares are owned by institutional investors. Comparatively, 5.0% of Binah Capital Group shares are owned by institutional investors. 19.2% of U.S. Global Investors shares are owned by company insiders. Comparatively, 1.9% of Binah Capital Group shares are owned 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 U.S. Global Investors and Binah Capital Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
U.S. Global Investors	$8.45 million	3.77	-$330,000.00	$0.06	41.00
Binah Capital Group	$168.90 million	0.26	-$4.56 million	$0.03	87.33

U.S. Global Investors has higher earnings, but lower revenue than Binah Capital Group. U.S. Global Investors is trading at a lower price-to-earnings ratio than Binah Capital Group, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares U.S. Global Investors and Binah Capital Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
U.S. Global Investors	10.04%	1.86%	1.75%
Binah Capital Group	0.58%	509.27%	1.55%

Analyst Recommendations

This is a breakdown of current ratings for U.S. Global Investors and Binah Capital Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
U.S. Global Investors	0	1	0	0	2.00
Binah Capital Group	1	0	0	0	1.00

Summary

U.S. Global Investors beats Binah Capital Group on 9 of the 12 factors compared between the two stocks.

About U.S. Global Investors

U.S. Global Investors, Inc. is a publicly owned investment manager. It primarily provides its services to investment companies. The firm is a large advisory firm, an investment adviser to an investment company which provides portfolio management for investment companies. The firm manages and launches equity/balanced funds, fixed income funds and other funds. It also manages hedge funds. The firm primarily invests in no-load mutual funds and exchange traded funds (ETFs). U.S. Global Investors, Inc. is based in San Antonio, Texas.

About Binah Capital Group

Binah Capital Group, Inc., together with its subsidiaries, operates in the wealth management industry. The company provides access to stock, bond, exchange-traded fund, and options execution services; and research, compliance, supervision, and accounting and related services for financial advisors. It also offers mutual funds and insurance products, as well as alternative investments, such as non-traded real estate investment trusts, unit trusts, and fixed and variable annuities. The company was founded in 2016 and is headquartered in Albany, New York. Binah Capital Group, Inc. operates as a subsidiary of MHC Securities, LLC.