Eagle Point Credit (NYSE:ECC – Get Free Report) and Victory Square Technologies (OTCMKTS:VSQTF – Get Free Report) are both small-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, earnings, dividends, analyst recommendations, valuation, risk and profitability.
Institutional & Insider Ownership
19.5% of Eagle Point Credit shares are held by institutional investors. 0.2% of Eagle Point Credit shares are held 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.
Volatility and Risk
Eagle Point Credit has a beta of 0.75, indicating that its stock price is 25% less volatile than the S&P 500. Comparatively, Victory Square Technologies has a beta of 1.53, indicating that its stock price is 53% more volatile than the S&P 500.
Analyst Recommendations
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Eagle Point Credit | 0 | 1 | 0 | 0 | 2.00 |
Victory Square Technologies | 0 | 0 | 0 | 0 | 0.00 |
Eagle Point Credit presently has a consensus price target of $10.00, suggesting a potential upside of 13.77%. Given Eagle Point Credit’s stronger consensus rating and higher probable upside, analysts plainly believe Eagle Point Credit is more favorable than Victory Square Technologies.
Profitability
This table compares Eagle Point Credit and Victory Square Technologies’ net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Eagle Point Credit | 36.60% | 12.87% | 9.17% |
Victory Square Technologies | -10.47% | -788.48% | -14.85% |
Earnings & Valuation
This table compares Eagle Point Credit and Victory Square Technologies”s gross revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Eagle Point Credit | $130.04 million | 5.20 | $118.75 million | $0.80 | 10.99 |
Victory Square Technologies | $8.93 million | 1.79 | -$10.49 million | ($0.01) | -16.30 |
Eagle Point Credit has higher revenue and earnings than Victory Square Technologies. Victory Square Technologies is trading at a lower price-to-earnings ratio than Eagle Point Credit, indicating that it is currently the more affordable of the two stocks.
Summary
Eagle Point Credit beats Victory Square Technologies on 12 of the 13 factors compared between the two stocks.
About Eagle Point Credit
Eagle Point Credit Company Inc. is a closed ended fund launched and managed by Eagle Point Credit Management LLC. It invests in fixed income markets of the United States. The fund invests equity and junior debt tranches of collateralized loan obligations consisting primarily of below investment grade U.S. senior secured loans. Eagle Point Credit Company Inc. was formed on March 24, 2014 and is domiciled in the United States.
About Victory Square Technologies
Victory Square Technologies Inc. is a private equity and venture capital firm specializing in incubation, acquisition and invests in startups, Early stage and provides the senior leadership and resources needed to growth. Through its portfolio companies it focuses on technologies in blockchain, digital health, web3, creator economy, metaverse, machine learning, climate tech, youth, mental health, healthcare, special needs, technology, First Nation, artificial intelligence, and virtual reality/augmented reality, health, mobile gaming, film, esports, cannabis, and education. The company formerly known as Fantasy 6 Sports Inc. and changed its name to Victory Square Technologies Inc. in June 2017. It prefers to take minority investment in the companies. Victory Square Technologies Inc. was incorporated in 2015 and is headquartered in Vancouver, Canada with an additional office in Lewes, Delaware.
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