Financial Analysis: Himalaya Technologies (OTCMKTS:HMLA) vs. SWK (NASDAQ:SWKH)

Himalaya Technologies (OTCMKTS:HMLA) and SWK (NASDAQ:SWKH) are both small-cap finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, dividends, profitability, valuation and earnings.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Himalaya Technologies and SWK, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Himalaya Technologies	0	0	0	0	0.00
SWK	0	2	0	0	2.00

SWK has a consensus target price of $18.00, suggesting a potential upside of 4.83%. Given SWK’s stronger consensus rating and higher probable upside, analysts plainly believe SWK is more favorable than Himalaya Technologies.

Valuation and Earnings

This table compares Himalaya Technologies and SWK”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Himalaya Technologies	N/A	N/A	-$580,000.00	N/A	N/A
SWK	$44.99 million	4.62	$13.49 million	$1.86	9.23

SWK has higher revenue and earnings than Himalaya Technologies.

Profitability

This table compares Himalaya Technologies and SWK’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Himalaya Technologies	N/A	N/A	N/A
SWK	50.37%	9.81%	8.57%

Volatility and Risk

Himalaya Technologies has a beta of 1.21, indicating that its stock price is 21% more volatile than the S&P 500. Comparatively, SWK has a beta of 0.3, indicating that its stock price is 70% less volatile than the S&P 500.

Insider and Institutional Ownership

99.3% of SWK shares are held by institutional investors. 1.3% of SWK shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

SWK beats Himalaya Technologies on 9 of the 10 factors compared between the two stocks.

About Himalaya Technologies

Himalaya Technologies, Inc., a development stage company, provides information services for the cannabis industry in the United States. It operates Kanab.Club, a social site for health and wellness products and services in the cannabis media market. The company was formerly known as Homeland Resources Ltd. The company was incorporated in 2003 and is headquartered in Pittsburgh, Pennsylvania.

About SWK

SWK Holdings Corporation, offers specialty finance and asset management services in the United States. It operates in two segments, Finance Receivables and Pharmaceutical Development. The Finance Receivables segment provides customized financing solutions to a range of life science companies, including companies in the biotechnology, medical device, medical diagnostics and related tools, animal health, and pharmaceutical industries, as well as institutions and inventors. This segment also offers non-discretionary investment advisory services to institutional clients in separately managed accounts to invest in life science finance. The Pharmaceutical Development segment provides customers pharmaceutical development, formulation, and manufacturing services, as well as formulation solutions built around its proprietary oral drug delivery technologies, the Peptelligence platform. It also offers intellectual property licensing business. The company was formerly known as Kana Software, Inc. and changed its name to SWK Holdings Corporation in December 2009. SWK Holdings Corporation was incorporated in 1996 and is headquartered in Dallas, Texas.