U.S. Global Investors, Inc. (GROW) vs Rand Capital Corporation (RAND)

U.S. Global Investors, Inc. and Rand Capital Corporation are both Asset Management companies. U.S. Global Investors, Inc. is the larger, with a market value of $33.5M against $28.4M — 1.2× the size. Rand Capital Corporation has negative trailing earnings, so its P/E is not meaningful; U.S. Global Investors, Inc. trades at 10.5×. U.S. Global Investors, Inc. grew revenue faster over the last twelve months: 21.3% against −31.0%. U.S. Global Investors, Inc. has the higher net margin (29.8% vs −2.66%) and the lower return on invested capital (−1.89% vs 0.00%). Both pay a dividend; Rand Capital Corporation yields more (8.93% vs 3.86%). Across the 18 metrics below, U.S. Global Investors, Inc. leads on 10 and Rand Capital Corporation on 8.

Valuation

Metric GROW RAND Asset Management median
P/E 10.54 n/m 13.99
P/S 3.36 5.26 2.76
P/B 0.76 0.56 0.85
Price to free cash flow 50.62 n/m 8.32
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 9.49% (0.41%) 4.72%
Free cash flow yield 1.98% (13.81%) 4.44%

Profitability

Metric GROW RAND Asset Management median
Gross margin 100.00% 100.00% 100.00%
Operating margin (5.82%) 56.38% 33.42%
Net margin 29.80% (2.66%) 13.37%
Free cash flow margin 6.64% (72.42%) 12.36%
Return on equity 6.76% (0.27%) 4.79%
Return on assets 6.36% (0.25%) 1.55%
Return on invested capital (1.89%) 0.00% 2.97%

Growth

Metric GROW RAND Asset Management median
Revenue growth (TTM) 21.28% (30.97%) 7.42%
EPS growth (last fiscal year) 900.00% (179.82%) (6.67%)
Revenue growth, 5-year CAGR (13.89%) 15.85% 12.51%
Net income growth, 5-year CAGR (37.47%) 0.00% 0.00%

Health

Metric GROW RAND Asset Management median
Debt to equity 0.00 0.10 0.44
Current ratio 19.71 90.74 1.30
Net debt to EBITDA 42.87 (9.71) 1.02

Dividend

Metric GROW RAND Asset Management median
Dividend yield 3.86% 8.93% 6.60%
Payout ratio 0.41 — 0.94

Size

Metric GROW RAND Asset Management median
Market cap 33.45m 28.36m 694.86m

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