Analyzing Collective Audience (NASDAQ:CAUD) & BlackRock Capital Investment (NASDAQ:BKCC)

BlackRock Capital Investment (NASDAQ:BKCC) and Collective Audience (NASDAQ:CAUD) are both small-cap finance companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, risk, analyst recommendations, dividends, institutional ownership, valuation and profitability.

Profitability

This table compares BlackRock Capital Investment and Collective Audience’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BlackRock Capital Investment	32.65%	11.54%	5.93%
Collective Audience	N/A	N/A	-13.45%

Earnings and Valuation

This table compares BlackRock Capital Investment and Collective Audience’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BlackRock Capital Investment	$80.36 million	3.32	$26.24 million	$0.36	10.22
Collective Audience	N/A	N/A	-$2.50 million	N/A	N/A

BlackRock Capital Investment has higher revenue and earnings than Collective Audience.

Institutional and Insider Ownership

18.3% of BlackRock Capital Investment shares are owned by institutional investors. Comparatively, 60.8% of Collective Audience shares are owned by institutional investors. 1.7% of BlackRock Capital Investment shares are owned by insiders. Comparatively, 58.0% of Collective Audience shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and recommmendations for BlackRock Capital Investment and Collective Audience, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BlackRock Capital Investment	0	1	0	0	2.00
Collective Audience	0	0	0	0	N/A

BlackRock Capital Investment presently has a consensus price target of $3.75, indicating a potential upside of 1.90%. Given BlackRock Capital Investment’s higher possible upside, research analysts clearly believe BlackRock Capital Investment is more favorable than Collective Audience.

Risk & Volatility

BlackRock Capital Investment has a beta of 1.41, meaning that its stock price is 41% more volatile than the S&P 500. Comparatively, Collective Audience has a beta of -1.49, meaning that its stock price is 249% less volatile than the S&P 500.

Summary

BlackRock Capital Investment beats Collective Audience on 7 of the 9 factors compared between the two stocks.

About BlackRock Capital Investment

BlackRock Capital Investment Corporation, formerly known as BlackRock Kelso Capital Corporation, is a Business Development Company specializing in investments in middle market companies. The fund invests in all industries. It prefers to invest between $10 million and $50 million and can invest more or less in companies with EBITDA or operating cash flow between $10 million and $50 million. The fund invests in the form of senior and junior secured, unsecured, and subordinated debt securities and loans including cash flow, asset backed, and junior lien facilities and equity securities. It's equity investments can be structured in the form of warrants, preferred stock, common equity co-investments, and direct investments in common stock. The fund's debt investments are principally structured to provide for current cash interest and to a lesser extent non-cash interest, particularly with subordinated debt investments, through a pay-in-kind (PIK) feature. It can also make non-control investments.

About Collective Audience

Collective Audience, Inc. provides e-commerce and digital consumer acquisition solutions in the United States. Its digital marketing business enables brands and agencies to advertise across digital media and connected TV platforms. The company is headquartered in New York, New York. Collective Audience, Inc. is a subsidiary of Logiq, Inc.