Grow Capital (OTCMKTS:GRWC) & AMREP (NYSE:AXR) Financial Comparison

Grow Capital (OTCMKTS:GRWC) and AMREP (NYSE:AXR) 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, dividends, earnings, risk, institutional ownership, profitability and analyst recommendations.

Earnings & Valuation

This table compares Grow Capital and AMREP”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Grow Capital	$3.01 million	12.16	-$3.62 million	($0.03)	-8.00
AMREP	$49.69 million	2.91	$12.72 million	$2.40	11.33

AMREP has higher revenue and earnings than Grow Capital. Grow Capital is trading at a lower price-to-earnings ratio than AMREP, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Grow Capital and AMREP’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Grow Capital	-124.36%	N/A	N/A
AMREP	24.40%	9.58%	9.26%

Analyst Ratings

This is a summary of recent ratings and target prices for Grow Capital and AMREP, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Grow Capital	0	0	0	0	0.00
AMREP	0	1	0	0	2.00

Volatility & Risk

Grow Capital has a beta of 30.84, indicating that its share price is 2,984% more volatile than the S&P 500. Comparatively, AMREP has a beta of 1.41, indicating that its share price is 41% more volatile than the S&P 500.

Insider and Institutional Ownership

59.9% of AMREP shares are held by institutional investors. 43.9% of Grow Capital shares are held by insiders. Comparatively, 37.2% of AMREP shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

AMREP beats Grow Capital on 9 of the 12 factors compared between the two stocks.

About Grow Capital

Grow Capital, Inc. operates in the financial technology sector. It provides software, technology, and services to financial services firms and advisors. The company's software suite delivers customized back office compliance, multi-pay commission processing, and new client application submission system, as well as digital engagement marketing services centric to financial services. It also provides software customization, licensing, and subscription service contracts, as well as ongoing customization and maintenance services; and ad hoc services, including web hosting, website development, and other complementary professional services. The company was incorporated in 1999 and is based in Henderson, Nevada.

About AMREP

AMREP Corporation, through its subsidiaries, primarily engages in the real estate business. The company operates through two segments, Land Development and Homebuilding. It sells developed and undeveloped lots to homebuilders, commercial and industrial property developers, and others. In addition, the company owns mineral interests covering an area of approximately 55,000 surface acres of land in Sandoval County, New Mexico; and owns oil, gas, and minerals and mineral interests covering an area of approximately 147 surface acres of land in Brighton, Colorado. Further, the company focuses on selling single-family detached homes and attached homes. As of April 30, 2023, it owned approximately 17,000 acres in Sandoval County, New Mexico. The company owns an approximately 160-acre property in Brighton, Colorado. AMREP Corporation was founded in 1961 and is headquartered in Havertown, Pennsylvania.