Comparing Abits Group (NASDAQ:ABTS) and Runway Growth Finance (NASDAQ:RWAY)

Runway Growth Finance (NASDAQ:RWAY) and Abits Group (NASDAQ:ABTS) are both small-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, valuation, dividends, analyst recommendations, institutional ownership and profitability.

Profitability

This table compares Runway Growth Finance and Abits Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Runway Growth Finance	27.05%	12.91%	6.33%
Abits Group	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Runway Growth Finance and Abits Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Runway Growth Finance	0	6	2	0	2.25
Abits Group	0	0	0	0	0.00

Runway Growth Finance currently has a consensus price target of $11.79, suggesting a potential upside of 14.21%. Given Runway Growth Finance’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Runway Growth Finance is more favorable than Abits Group.

Insider and Institutional Ownership

64.6% of Runway Growth Finance shares are owned by institutional investors. Comparatively, 0.2% of Abits Group shares are owned by institutional investors. 1.5% of Runway Growth Finance shares are owned by insiders. Comparatively, 6.7% of Abits Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Runway Growth Finance and Abits Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Runway Growth Finance	$164.21 million	2.35	$44.34 million	$1.04	9.93
Abits Group	$1.68 million	13.54	-$12.59 million	N/A	N/A

Runway Growth Finance has higher revenue and earnings than Abits Group.

Risk and Volatility

Runway Growth Finance has a beta of 0.58, suggesting that its stock price is 42% less volatile than the S&P 500. Comparatively, Abits Group has a beta of 2.68, suggesting that its stock price is 168% more volatile than the S&P 500.

Summary

Runway Growth Finance beats Abits Group on 9 of the 12 factors compared between the two stocks.

About Runway Growth Finance

Runway Growth Finance Corp. is a business development company specializing investments in senior-secured loans to late stage and growth companies. It prefers to make investments in companies engaged in the technology, life sciences, healthcare and information services, business services and select consumer services and products sectors. It prefers to investments in companies engaged in electronic equipment and instruments, systems software, hardware, storage and peripherals and specialized consumer services, application software, healthcare technology, internet software and services, data processing and outsourced services, internet retail, human resources and employment services, biotechnology, healthcare equipment and education services. It invests in senior secured loans between $10 million and $75 million.

About Abits Group

Abits Group Inc. operates in the bitcoin mining business in the United States. The company was formerly known as Moxian (BVI) Inc and changed its name to Abits Group Inc. in November 2023. Abits Group Inc. was incorporated in 2021 and is based in Causeway Bay, Hong Kong.