Atlanticus (NASDAQ:ATLC – Get Free Report) and Sphere 3D (NASDAQ:ANY – Get Free Report) are both small-cap finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, earnings, dividends, profitability, risk, institutional ownership and analyst recommendations.
Profitability
This table compares Atlanticus and Sphere 3D’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Atlanticus | 5.86% | 23.43% | 2.17% |
| Sphere 3D | -163.45% | -78.14% | -73.36% |
Valuation and Earnings
This table compares Atlanticus and Sphere 3D”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Atlanticus | $1.97 billion | 0.65 | $122.20 million | $6.70 | 12.55 |
| Sphere 3D | $10.28 million | 1.67 | -$21.48 million | ($3.48) | -1.16 |
Atlanticus has higher revenue and earnings than Sphere 3D. Sphere 3D is trading at a lower price-to-earnings ratio than Atlanticus, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of current ratings and price targets for Atlanticus and Sphere 3D, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Atlanticus | 0 | 1 | 4 | 1 | 3.00 |
| Sphere 3D | 1 | 0 | 0 | 0 | 1.00 |
Atlanticus presently has a consensus target price of $101.67, indicating a potential upside of 20.89%. Given Atlanticus’ stronger consensus rating and higher probable upside, analysts clearly believe Atlanticus is more favorable than Sphere 3D.
Institutional and Insider Ownership
14.2% of Atlanticus shares are owned by institutional investors. Comparatively, 17.3% of Sphere 3D shares are owned by institutional investors. 51.0% of Atlanticus shares are owned by insiders. Comparatively, 4.2% of Sphere 3D shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Risk and Volatility
Atlanticus has a beta of 2.14, suggesting that its stock price is 114% more volatile than the S&P 500. Comparatively, Sphere 3D has a beta of 3.63, suggesting that its stock price is 263% more volatile than the S&P 500.
Summary
Atlanticus beats Sphere 3D on 12 of the 15 factors compared between the two stocks.
About Atlanticus
Atlanticus Holdings Corporation, a financial technology company, provides credit and related financial services and products to customers the United States. It operates in two segments, Credit as a Service, and Auto Finance. The Credit as a Service segment originates a range of consumer loan products, such as private label and general purpose credit cards originated by lenders through various channels, including retail and healthcare, direct mail solicitation, digital marketing, and partnerships with third parties; and offers credit to their customers for the purchase of various goods and services, including consumer electronics, furniture, elective medical procedures, healthcare, and home-improvements by partnering with retailers, healthcare providers, and other service providers. This segment also offers loan servicing, such as risk management and customer service outsourcing for third parties; and engages in testing and investment activities in consumer finance technology platforms. The Auto Finance segment purchases and/or services loans secured by automobiles from or for a pre-qualified network of independent automotive dealers and automotive finance companies in the buy-here, pay-here, and used car business. This segment also provides floor plan financing and installment lending products. It also invests in and services portfolios of credit card receivables. The company was founded in 1996 and is headquartered in Atlanta, Georgia.
About Sphere 3D
Sphere 3D Corp. engages in the bitcoin mining business. It is involved with digital asset mining pool operators to provide computing power to the mining pools. The company is based in Stamford, Connecticut.
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