Analyzing iShares Nasdaq Biotechnology ETF (NASDAQ:IBB) and SuRo Capital (NASDAQ:SSSS)

SuRo Capital (NASDAQ:SSSS) and iShares Nasdaq Biotechnology ETF (NASDAQ:IBB) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, dividends, valuation, profitability, institutional ownership, risk and analyst recommendations.

Risk & Volatility

SuRo Capital has a beta of 2.23, indicating that its share price is 123% more volatile than the S&P 500. Comparatively, iShares Nasdaq Biotechnology ETF has a beta of 1.07, indicating that its share price is 7% more volatile than the S&P 500.

Earnings & Valuation

This table compares SuRo Capital and iShares Nasdaq Biotechnology ETF’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
SuRo Capital $1.50 million 197.30 $23.95 million N/A N/A
iShares Nasdaq Biotechnology ETF N/A N/A N/A N/A N/A

SuRo Capital has higher revenue and earnings than iShares Nasdaq Biotechnology ETF.

Analyst Recommendations

This is a breakdown of current ratings and target prices for SuRo Capital and iShares Nasdaq Biotechnology ETF, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SuRo Capital 0 0 2 0 3.00
iShares Nasdaq Biotechnology ETF 0 0 0 0 N/A

SuRo Capital currently has a consensus target price of $16.75, indicating a potential upside of 14.33%. Given SuRo Capital’s higher probable upside, research analysts plainly believe SuRo Capital is more favorable than iShares Nasdaq Biotechnology ETF.

Dividends

SuRo Capital pays an annual dividend of $3.00 per share and has a dividend yield of 20.5%. iShares Nasdaq Biotechnology ETF pays an annual dividend of $0.39 per share and has a dividend yield of 0.3%.

Institutional & Insider Ownership

16.3% of SuRo Capital shares are owned by institutional investors. Comparatively, 79.8% of iShares Nasdaq Biotechnology ETF shares are owned by institutional investors. 1.2% of SuRo Capital shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares SuRo Capital and iShares Nasdaq Biotechnology ETF’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
SuRo Capital 1,249.39% -6.27% -3.94%
iShares Nasdaq Biotechnology ETF N/A N/A N/A

Summary

SuRo Capital beats iShares Nasdaq Biotechnology ETF on 7 of the 10 factors compared between the two stocks.

SuRo Capital Company Profile

Sutter Rock Capital Corp. is specializing in growth capital, B round and beyond, emerging growth, and pre-IPO investments in late stage venture-backed private companies. It makes direct (primary rounds) investments in companies and also makes secondary direct investments. The fund operates as a Business development Company. The fund may also invest in select publicly-traded equity securities of companies that otherwise meet its investment criteria. It seeks to invest in the technology subsectors of social/mobile marketplaces, sustainability, cloud computing and big data, social media, mobile computing and applications, software as a service, Internet commerce, green technology and education technology. The fund invests in the form of non-controlling equity and equity-related investments, including common stock, warrants, preferred stock and similar forms of senior equity, which may or may not be convertible into a portfolio company's common equity, and convertible debt securities with a significant equity component. It will invest in companies based in United States. It generally invests in companies with a market value of over $100 million. Typically, the firm exits its position within 18 months of going public, or 12 months after any relevant lock-up has expired.

iShares Nasdaq Biotechnology ETF Company Profile

iShares Nasdaq Biotechnology ETF (the Fund), formerly iShares Nasdaq Biotechnology Index Fund, is an exchange-traded fund (ETF). The Fund seeks investment results that correspond generally to the price and yield performance of the NASDAQ Biotechnology Index (the Index). The Index contains securities of NASDAQ listed companies that are classified according to the Industry Classification Benchmark as either biotechnology or pharmaceuticals, which also meet other eligibility criteria determined by NASDAQ. The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. The Fund’s investment advisor is BlackRock Fund Advisors, which is indirectly owned by BlackRock, Inc.

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