Bitfarms (NASDAQ:BITF – Get Free Report) and Runway Growth Finance (NASDAQ:RWAY – Get Free Report) are both small-cap business services companies, but which is the better business? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, profitability, valuation, analyst recommendations and dividends.
Profitability
This table compares Bitfarms and Runway Growth Finance’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Bitfarms | -70.53% | -19.58% | -16.13% |
| Runway Growth Finance | 27.00% | 13.85% | 7.07% |
Analyst Recommendations
This is a breakdown of recent ratings for Bitfarms and Runway Growth Finance, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Bitfarms | 0 | 0 | 5 | 0 | 3.00 |
| Runway Growth Finance | 0 | 5 | 1 | 0 | 2.17 |
Insider and Institutional Ownership
20.6% of Bitfarms shares are owned by institutional investors. Comparatively, 64.6% of Runway Growth Finance shares are owned by institutional investors. 9.5% of Bitfarms shares are owned by company insiders. Comparatively, 1.0% of Runway Growth Finance shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Valuation and Earnings
This table compares Bitfarms and Runway Growth Finance’s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Bitfarms | $146.37 million | 4.45 | -$104.04 million | ($0.37) | -4.95 |
| Runway Growth Finance | $164.21 million | 3.27 | $44.34 million | $1.10 | 12.05 |
Runway Growth Finance has higher revenue and earnings than Bitfarms. Bitfarms is trading at a lower price-to-earnings ratio than Runway Growth Finance, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Bitfarms has a beta of 3.65, indicating that its share price is 265% more volatile than the S&P 500. Comparatively, Runway Growth Finance has a beta of 0.65, indicating that its share price is 35% less volatile than the S&P 500.
Summary
Runway Growth Finance beats Bitfarms on 8 of the 14 factors compared between the two stocks.
About Bitfarms
Bitfarms Ltd. engages in the mining of cryptocurrency coins and tokens in Canada, the United States, Paraguay, and Argentina. It owns and operates server farms that primarily validates transactions on the Bitcoin Blockchain and earning cryptocurrency from block rewards and transaction fees. The company also provides electrician services to commercial and residential customers in Quebec, Canada. It also undertakes hosting of third-party mining hardware. The company was founded in 2017 and is based in Toronto, Canada.
About Runway Growth Finance
Runway Growth Finance Corp. is a business development company specializing investments in senior-secured loans to late stage and growth companies. It prefers to make investments in companies engaged in the technology, life sciences, healthcare and information services, business services and select consumer services and products sectors. It prefers to investments in companies engaged in electronic equipment and instruments, systems software, hardware, storage and peripherals and specialized consumer services, application software, healthcare technology, internet software and services, data processing and outsourced services, internet retail, human resources and employment services, biotechnology, healthcare equipment and education services. It invests in senior secured loans between $10 million and $75 million.
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