Head-To-Head Review: Benev Capital (OTCMKTS:BEVFF) and Scully Royalty (NYSE:SRL)

Benev Capital (OTCMKTS:BEVFF) and Scully Royalty (NYSE:SRL) are both small-cap multi-sector conglomerates companies, but which is the better investment? We will compare the two companies based on the strength of their risk, institutional ownership, analyst recommendations, earnings, profitability, valuation and dividends.

Institutional and Insider Ownership

42.0% of Scully Royalty shares are held by institutional investors. 12.0% of Benev Capital shares are held by insiders. Comparatively, 1.9% of Scully Royalty shares are held 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.

Analyst Ratings

This is a breakdown of current ratings and target prices for Benev Capital and Scully Royalty, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Benev Capital	0	0	0	0	0.00
Scully Royalty	1	0	0	0	1.00

Earnings and Valuation

This table compares Benev Capital and Scully Royalty”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Benev Capital	$50.66 million	11.21	$26.24 million	$0.15	21.61
Scully Royalty	$35.77 million	2.54	-$15.02 million	N/A	N/A

Benev Capital has higher revenue and earnings than Scully Royalty.

Profitability

This table compares Benev Capital and Scully Royalty’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Benev Capital	49.89%	12.53%	5.80%
Scully Royalty	N/A	N/A	N/A

Risk & Volatility

Benev Capital has a beta of 0.76, indicating that its share price is 24% less volatile than the S&P 500. Comparatively, Scully Royalty has a beta of 0.57, indicating that its share price is 43% less volatile than the S&P 500.

Dividends

Benev Capital pays an annual dividend of $0.21 per share and has a dividend yield of 6.5%. Scully Royalty pays an annual dividend of $0.26 per share and has a dividend yield of 4.2%. Benev Capital pays out 140.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Scully Royalty has increased its dividend for 1 consecutive years.

Summary

Benev Capital beats Scully Royalty on 9 of the 13 factors compared between the two stocks.

About Benev Capital

Diversified Royalty Corp., a multi-royalty corporation, engages in the acquisition of royalties from multi-location businesses and franchisors in North America. It owns the Sutton, Mr. Lube + Tires, AIR MILES, Mr. Mikes, Nurse Next Door, Oxford Learning Centres, Stratus Building Solutions, and BarBurrito trademarks. The company was formerly known as BENEV Capital Inc. and changed its name to Diversified Royalty Corp. in September 2014. Diversified Royalty Corp. was founded in 1960 and is headquartered in Vancouver, Canada.

About Scully Royalty

Scully Royalty Ltd. operates as an iron ore mining company in the Americas, Africa, Canada, Asia, and Europe. It operates through three segments: Royalty, Industrial, and Merchant Banking. The company holds royalty interest in the Scully iron ore mine located in the Province of Newfoundland and Labrador, Canada. It also engages in manufacturing, and medical supplies and services industries. In addition, the company offers merchant banking and financial services to small and medium sized enterprises; operates projects in resources and services; and holds two industrial real estate parks. Scully Royalty Ltd. was formerly known as MFC Bancorp Ltd. and changed its name to Scully Royalty Ltd. in June 2019. The company was incorporated in 2017 and is based in Shanghai, the People's Republic of China.