Critical contrast: Second Street Capital (OTCMKTS: CTON) and M/I Homes (NYSE: MHO)
Second Street Capital (OTCMKTS: CTON – Get a rating) and M/I fireplaces (NYSE: MHO – Get a rating) are both small cap finance companies, but which is the better investment? We’ll compare the two companies based on the strength of their institutional ownership, dividends, earnings, risk, valuation, profitability, and analyst recommendations.
This is a breakdown of the current ratings of Second Street Capital and M/I Homes, as reported by MarketBeat.
|Sales Ratings||Hold odds||Buy reviews||Strong buy odds||Rating|
|Second Street Capital||0||0||0||0||N / A|
M/I Homes has a consensus target price of $100.00, indicating a potential upside of 118.34%. Given the higher potential upside of M/I Homes, analysts clearly believe that M/I Homes is more favorable than Second Street Capital.
Risk and Volatility
Second Street Capital has a beta of 21.2, suggesting that its stock price is 2,020% more volatile than the S&P 500. By comparison, M/I Homes has a beta of 1.89, suggesting that the its share price is 89% more volatile than the S&P 500. .
Benefits and evaluation
This table compares the revenue, earnings per share and valuation of Second Street Capital and M/I Homes.
|Gross revenue||Price/sales ratio||Net revenue||Earnings per share||Price/earnings ratio|
|Second Street Capital||N / A||N / A||N / A||N / A||N / A|
|M/I fireplaces||$3.75 billion||0.35||$396.87 million||$14.81||3.09|
M/I Homes has higher revenues and profits than Second Street Capital.
This table compares the net margins, return on equity and return on assets of Second Street Capital and M/I Homes.
|Net margins||Return on equity||return on assets|
|Second Street Capital||N / A||N / A||N / A|
Insider and Institutional Ownership
89.6% of M/I Homes shares are held by institutional investors. 71.9% of Second Street Capital’s stock is held by insiders of the company. By comparison, 3.6% of M/I Homes shares are held by insiders of the company. Strong institutional ownership indicates that endowments, hedge funds, and large fund managers believe a stock will outperform the market over the long term.
M/I Homes beats Second Street Capital on 7 out of 9 factors compared between the two stocks.
About Second Street Capital
Second Street Capital, Inc. operates as a specialty finance company in the United States. It provides asset-based loans to small and medium enterprises, export trading companies, and small and medium-sized homebuilders, developers and investors. The company offers mortgage and asset-based loans with income participation, as well as preferred equity investments and senior secured loans. It also makes and manages investments in qualified real estate assets as principal and on behalf of institutional clients. The company was formerly known as Calton, Inc. and changed its name to Second Street Capital, Inc. in November 2011. Second Street Capital, Inc. was founded in 1969 and is headquartered in Fort Lauderdale, Utah. Florida.
About M/I Homes
M/I Homes, Inc., together with its subsidiaries, operates as a builder of single family homes in Ohio, Indiana, Illinois, Minnesota, Michigan, Florida, Texas, North Carolina and Tennessee. The Company operates through Northern Homebuilding, Southern Homebuilding and Financial Services segments. It designs, builds, markets and sells single-family homes and attached townhouses to first-time buyers, millennials, movers, empty nests and luxuries under the M/I Homes brand. The company also purchases undeveloped land for development into serviced lots for the construction of single-family homes, as well as for resale to others. In addition, it issues and sells mortgages; and serves as a title insurance agent by providing title insurance policies, review and closing services to buyers of its homes. The company was formerly known as M/I Schottenstein Homes, Inc. and changed its name to M/I Homes, Inc. in January 2004. M/I Homes, Inc. was founded in 1976 and is based in Columbus, Ohio.
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