Critical Survey: CaliberCos (NASDAQ:CWD) and Waton Financial (NASDAQ:WTF)

CaliberCos (NASDAQ:CWD) and Waton Financial (NASDAQ:WTF) are both small-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, profitability, valuation, institutional ownership, earnings, dividends and risk.

Valuation and Earnings

This table compares CaliberCos and Waton Financial”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CaliberCos	$20.10 million	0.39	-$21.80 million	($7.56)	-0.12
Waton Financial	$7.45 million	21.59	-$11.97 million	N/A	N/A

Waton Financial has lower revenue, but higher earnings than CaliberCos.

Analyst Recommendations

This is a summary of recent ratings and price targets for CaliberCos and Waton Financial, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CaliberCos	1	1	0	0	1.50
Waton Financial	1	0	0	0	1.00

Risk & Volatility

CaliberCos has a beta of -0.24, indicating that its stock price is 124% less volatile than the S&P 500. Comparatively, Waton Financial has a beta of 1.39, indicating that its stock price is 39% more volatile than the S&P 500.

Insider & Institutional Ownership

4.1% of CaliberCos shares are owned by institutional investors. 8.3% of CaliberCos shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares CaliberCos and Waton Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CaliberCos	-122.65%	-160.62%	-18.79%
Waton Financial	N/A	N/A	N/A

Summary

Waton Financial beats CaliberCos on 6 of the 10 factors compared between the two stocks.

About CaliberCos

Caliber (NASDAQ: CWD) is a vertically integrated alternative asset management firm whose purpose is to build generational wealth for investors seeking to access opportunities in middle-market assets. Caliber differentiates itself by creating, managing, and servicing proprietary products, including middle-market investment funds, private syndications, and direct investments which are managed by our in-house asset services group. Our funds include investment vehicles focused primarily on real estate, private equity, and debt facilities. Additional information can be found at Caliberco.com and CaliberFunds.co.

About Waton Financial

Waton Financial Ltd. is a holding company, which engages in the provision of securities brokerage and financial technology services. It is also involved in software licensing and related support services including the licensing of trading platform app, upgrades and enhancements, maintenance, and other related services to financial institutions. The company was founded on June 25, 2010 and is headquartered in Hong Kong.