Capital Financial (OTCMKTS:CPFH) and Futu (NASDAQ:FHL) are both small-cap finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, earnings, dividends, analyst recommendations, institutional ownership, risk and valuation.

Earnings & Valuation

This table compares Capital Financial and Futu’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Capital Financial $15.07 million N/A -$290,000.00 N/A N/A
Futu N/A N/A N/A N/A N/A

Futu has lower revenue, but higher earnings than Capital Financial.

Profitability

This table compares Capital Financial and Futu’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Capital Financial -2.80% -123.36% -7.99%
Futu N/A N/A N/A

Analyst Recommendations

This is a breakdown of current ratings and price targets for Capital Financial and Futu, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Capital Financial 0 0 0 0 N/A
Futu 0 2 0 0 2.00

Futu has a consensus price target of $17.62, suggesting a potential upside of 63.00%. Given Futu’s higher probable upside, analysts clearly believe Futu is more favorable than Capital Financial.

Insider and Institutional Ownership

2.5% of Futu shares are owned by institutional investors. 54.0% of Capital Financial shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Dividends

Capital Financial pays an annual dividend of $50.00 per share and has a dividend yield of 5.6%. Futu does not pay a dividend.

Summary

Futu beats Capital Financial on 5 of the 8 factors compared between the two stocks.

About Capital Financial

Capital Financial Holdings, Inc., a full-service brokerage firm, provides investment products and services to independent investment representatives, financial planners, and investment advisors in the United States. It offers mutual funds, insurance products, and various other securities, as well as investment advisory services. The company was formerly known as Integrity Mutual Funds, Inc. and changed its name to Capital Financial Holdings, Inc. in May 2009. Capital Financial Holdings, Inc. was founded in 1987 and is headquartered in Minot, North Dakota.

About Futu

Futu Holdings Limited operates digitized brokerage platform in Hong Kong, China, Japan, the United States, and internationally. Its platform offers investing services, including trade execution and margin financing which allows to trade securities, such as stocks, warrants, options and exchange-traded funds, or ETFs, across different markets; market data and information; and securities lending services. The company was founded in 2011 and is headquartered in Sheung Wan, Hong Kong.

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