Head-To-Head Analysis: Coinbase Global (NASDAQ:COIN) and Portman Ridge Finance (NASDAQ:BCIC)

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

Analyst Ratings

This is a summary of current ratings and recommmendations for Portman Ridge Finance and Coinbase Global, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Portman Ridge Finance	2	3	0	0	1.60
Coinbase Global	4	12	20	0	2.44

Portman Ridge Finance presently has a consensus target price of $9.25, suggesting a potential upside of 54.42%. Coinbase Global has a consensus target price of $211.47, suggesting a potential upside of 50.59%. Given Portman Ridge Finance’s higher probable upside, research analysts plainly believe Portman Ridge Finance is more favorable than Coinbase Global.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Portman Ridge Finance	-5.72%	14.09%	5.44%
Coinbase Global	-12.46%	0.76%	0.37%

Institutional and Insider Ownership

30.1% of Portman Ridge Finance shares are held by institutional investors. Comparatively, 68.8% of Coinbase Global shares are held by institutional investors. 1.3% of Portman Ridge Finance shares are held by insiders. Comparatively, 16.7% of Coinbase Global shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Risk and Volatility

Portman Ridge Finance has a beta of 0.55, suggesting that its stock price is 45% less volatile than the S&P 500. Comparatively, Coinbase Global has a beta of 3.35, suggesting that its stock price is 235% more volatile than the S&P 500.

Valuation & Earnings

This table compares Portman Ridge 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
Portman Ridge Finance	$61.15 million	1.21	$11.49 million	($0.55)	-10.89
Coinbase Global	$7.18 billion	5.16	$1.26 billion	($2.83)	-49.62

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

Summary

Coinbase Global beats Portman Ridge Finance on 8 of the 14 factors compared between the two stocks.

About Portman Ridge Finance

Portman Ridge Finance Corporation is a business development company specializing in investments in unitranche loans (including last out), first lien loans, second lien loans, subordinated debt, equity co-investment, buyout in middle market companies. It also makes acquisitions in businesses complementary to the firm’s business. It primarily invests in healthcare, cargo transport, manufacturing, industrial & environmental services, logistics & distribution, media & telecommunications, real estate, education, automotive, agriculture, aerospace/defense, packaging, electronics, finance, non-durable consumer, consumer products, business services, utilities, insurance, and food and beverage sectors. The fund typically invests $1 million to $20 million in its portfolio companies. It provides senior secured term loans from $2 million to $20 million maturing in five to seven years; second lien term loans from $5 million to $15 million maturing in six to eight years; senior unsecured loans $5 million to $23 million maturing in six to eight years; mezzanine loans from $5 million to $15 million maturing in seven to ten years; and equity investments from $1 to $5 million. The fund targets the companies with EBITDA between $5 million and $25 million. While investing in debt securities, it invests in those middle market firms with EBITDA between $10 million and $50 million and/or total debt between $25 million and $150 million. It invests in minority, and majority or control equity positions alongside its private equity sponsor partners.

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.