Higher One (NYSE: ONE) and B. Riley Financial (NASDAQ:RILY) are both small-cap industrials companies, but which is the superior business? We will compare the two companies based on the strength of their risk, valuation, analyst recommendations, dividends, earnings, institutional ownership and profitability.

Profitability

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This table compares Higher One and B. Riley Financial’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Higher One -26.77% -16.36% -10.01%
B. Riley Financial 3.59% 15.01% 3.60%

Valuation and Earnings

This table compares Higher One and B. Riley Financial’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Higher One N/A N/A N/A ($0.62) -8.31
B. Riley Financial $322.18 million 1.58 $21.52 million $1.51 12.68

B. Riley Financial has higher revenue and earnings than Higher One. Higher One is trading at a lower price-to-earnings ratio than B. Riley Financial, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

47.3% of B. Riley Financial shares are held by institutional investors. 30.9% of B. Riley Financial shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Risk & Volatility

Higher One has a beta of 1.44, suggesting that its share price is 44% more volatile than the S&P 500. Comparatively, B. Riley Financial has a beta of 0.71, suggesting that its share price is 29% less volatile than the S&P 500.

Dividends

B. Riley Financial pays an annual dividend of $0.32 per share and has a dividend yield of 1.7%. Higher One does not pay a dividend. B. Riley Financial pays out 21.2% of its earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of recent recommendations for Higher One and B. Riley Financial, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Higher One 0 0 0 0 N/A
B. Riley Financial 0 0 0 0 N/A

Summary

B. Riley Financial beats Higher One on 9 of the 11 factors compared between the two stocks.

Higher One Company Profile

Higher One Holdings, Inc. is a provider of technology-based payment processing and refund disbursement services to higher education institutions and their students. The Company also provides campus communities with student-oriented banking services, which include user-friendly features, through its bank partners. The Company operates through two segments: Disbursements and Payments. The Disbursements segment includes its Refund Management disbursement service, which is offered to higher education institution clients, and the OneAccount, a Federal Deposit Insurance Corporation (FDIC)-insured online checking account that is offered to students, as well as faculty, staff and alumni. The Payments segment includes its CASHNet payment processing suite and its Campus Solutions suite, both of which enable higher education institutions to accept online payments, automate certain billing and processing functions, and offer tuition payment plans.

B. Riley Financial Company Profile

B. Riley Financial, Inc. is an independent investment bank. The Company’s segments include capital markets, auction and liquidation, valuation and appraisal, and Principal Investments-United Online. The capital markets segment provides an array of investment banking, corporate finance, research, wealth management, sales and trading services to corporate, institutional and high net worth clients. The auction and liquidation segment utilizes a scalable network of independent contractors and industry-specific advisors to tailor its services to the needs of a multitude of clients, logistical challenges and distressed circumstances. The valuation and appraisal segment provides valuation and appraisal services to financial institutions, lenders, private equity firms and other providers of capital. The principal investments-United Online segment consists of businesses, which has been acquired primarily for attractive investment return characteristics.

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