Coinbase Global (NASDAQ:COIN) and Runway Growth Finance (NASDAQ:RWAY) Financial Analysis

Runway Growth Finance (NASDAQ:RWAY) and Coinbase Global (NASDAQ:COIN) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, institutional ownership, risk, valuation, dividends, earnings and analyst recommendations.

Institutional & Insider Ownership

64.6% of Runway Growth Finance shares are owned by institutional investors. Comparatively, 68.8% of Coinbase Global shares are owned by institutional investors. 1.0% of Runway Growth Finance shares are owned by company insiders. Comparatively, 23.4% of Coinbase Global shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Runway Growth Finance and Coinbase Global’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Runway Growth Finance	$164.21 million	2.81	$44.34 million	$1.10	10.65
Coinbase Global	$3.11 billion	18.44	$94.87 million	$5.01	46.58

Coinbase Global has higher revenue and earnings than Runway Growth Finance. Runway Growth Finance is trading at a lower price-to-earnings ratio than Coinbase Global, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current recommendations and price targets for Runway Growth Finance and Coinbase Global, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Runway Growth Finance	0	7	1	0	2.13
Coinbase Global	2	9	9	0	2.35

Runway Growth Finance presently has a consensus price target of $12.54, indicating a potential upside of 7.01%. Coinbase Global has a consensus price target of $215.50, indicating a potential downside of 7.66%. Given Runway Growth Finance’s higher probable upside, equities research analysts clearly believe Runway Growth Finance is more favorable than Coinbase Global.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Runway Growth Finance	26.93%	14.17%	7.34%
Coinbase Global	33.98%	9.42%	0.30%

Volatility & Risk

Runway Growth Finance has a beta of 0.61, indicating that its stock price is 39% less volatile than the S&P 500. Comparatively, Coinbase Global has a beta of 3.4, indicating that its stock price is 240% more volatile than the S&P 500.

Summary

Coinbase Global beats Runway Growth Finance on 11 of the 14 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 Coinbase Global

Coinbase Global, Inc. provides financial infrastructure and technology for the crypto economy in the United States and internationally. The company offers the primary financial account in the crypto economy for consumers; and a marketplace with a pool of liquidity for transacting in crypto assets for institutions. It also provides technology and services that enable developers to build crypto products and securely accept crypto assets as payment. The company was founded in 2012 and is based in Wilmington, Delaware.