Allied Minds (OTCMKTS:ALLWF) and Arlington Asset Investment (NYSE:AI) are both small-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, earnings, dividends, profitability, valuation, analyst recommendations and institutional ownership.

Analyst Ratings

This is a summary of current recommendations for Allied Minds and Arlington Asset Investment, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Allied Minds 0 0 1 0 3.00
Arlington Asset Investment 0 1 1 0 2.50

Arlington Asset Investment has a consensus price target of $14.00, indicating a potential upside of 157.83%. Given Arlington Asset Investment’s higher possible upside, analysts plainly believe Arlington Asset Investment is more favorable than Allied Minds.

Dividends

Arlington Asset Investment pays an annual dividend of $0.90 per share and has a dividend yield of 16.6%. Allied Minds does not pay a dividend. Arlington Asset Investment pays out 43.7% of its earnings in the form of a dividend.

Insider & Institutional Ownership

45.1% of Arlington Asset Investment shares are owned by institutional investors. 2.2% of Arlington Asset Investment shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Allied Minds and Arlington Asset Investment’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Allied Minds N/A N/A N/A
Arlington Asset Investment -27.63% 15.96% 1.08%

Risk and Volatility

Allied Minds has a beta of 0.36, indicating that its share price is 64% less volatile than the S&P 500. Comparatively, Arlington Asset Investment has a beta of 1.01, indicating that its share price is 1% more volatile than the S&P 500.

Valuation and Earnings

This table compares Allied Minds and Arlington Asset Investment’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Allied Minds N/A N/A N/A N/A N/A
Arlington Asset Investment $130.95 million 1.52 -$91.79 million $2.06 2.64

Allied Minds has higher earnings, but lower revenue than Arlington Asset Investment.

Summary

Arlington Asset Investment beats Allied Minds on 8 of the 11 factors compared between the two stocks.

Allied Minds Company Profile

Allied Minds plc is a private equity and venture capital firm specializing in pre-seed, seed, start-up, and early stage technology investments. The firm prefers to invest across all products, services, and industries with a focus on the life science and technology sector including medical devices, diagnostics, biopharmaceuticals, big data, cyber security, communications, semiconductors, and food safety. It primarily invests in companies based in the United States, but depending on opportunities this could be expanded to a global network of partners and investments. The firm typically invests between $0.25 million and $1 million in seed investments and from $5 million to $10 million in Series A investments. The firm focuses on commercializing technologies from leading United States Universities and national labs. It seeks to take majority equity positions in its portfolio companies. The firm partners with universities to fund licensing deals and corporate spin-outs. It prefers to continue to invest alongside a syndicate for larger Series A and follow-on rounds. Allied Minds plc is based in Boston, Massachusetts with additional offices in London, United Kingdom; Los Angeles, California; Seattle, Washington; New York; New York and Washington, DC.

Arlington Asset Investment Company Profile

Arlington Asset Investment Corp. (NYSE: AI) is a principal investment firm that currently invests primarily in mortgage-related and other assets. The Company is headquartered in the Washington, D.C. metropolitan area. For more information, please visit www.arlingtonasset.com.

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