Critical Contrast: Patria Investments (NYSE:PAX) vs. BR Biopharma (NASDAQ:BRBI)

Patria Investments (NYSE:PAX) and BR Biopharma (NASDAQ:BRBI) are both small-cap finance companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, profitability, valuation, earnings, risk and dividends.

Analyst Ratings

This is a summary of current ratings and recommmendations for Patria Investments and BR Biopharma, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Patria Investments	3	1	1	0	1.60
BR Biopharma	1	1	0	0	1.50

Patria Investments currently has a consensus price target of $12.75, indicating a potential upside of 34.21%. Given Patria Investments’ stronger consensus rating and higher probable upside, equities analysts clearly believe Patria Investments is more favorable than BR Biopharma.

Volatility & Risk

Patria Investments has a beta of 0.81, indicating that its stock price is 19% less volatile than the S&P 500. Comparatively, BR Biopharma has a beta of 0.43, indicating that its stock price is 57% less volatile than the S&P 500.

Dividends

Patria Investments pays an annual dividend of $0.65 per share and has a dividend yield of 6.8%. BR Biopharma pays an annual dividend of $0.41 per share and has a dividend yield of 5.6%. Patria Investments pays out 185.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. BR Biopharma pays out 512.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Patria Investments is clearly the better dividend stock, given its higher yield and lower payout ratio.

Insider & Institutional Ownership

96.3% of Patria Investments shares are owned by institutional investors. 58.1% of Patria Investments shares are owned by insiders. Comparatively, 29.3% of BR Biopharma shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Patria Investments and BR Biopharma’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Patria Investments	19.91%	38.68%	15.84%
BR Biopharma	N/A	N/A	N/A

Valuation and Earnings

This table compares Patria Investments and BR Biopharma”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Patria Investments	$428.00 million	1.48	$73.40 million	$0.35	27.14
BR Biopharma	$12.34 billion	0.01	$31.36 million	$0.08	91.38

Patria Investments has higher earnings, but lower revenue than BR Biopharma. Patria Investments is trading at a lower price-to-earnings ratio than BR Biopharma, indicating that it is currently the more affordable of the two stocks.

Summary

Patria Investments beats BR Biopharma on 14 of the 16 factors compared between the two stocks.

About Patria Investments

Patria Investments Limited operates as a private market investment firm focused on investing in Latin America. The company offers asset management services to investors focusing on private equity funds, infrastructure development funds, co-investments funds, constructivist equity funds, and real estate and credit funds. Patria Investments Limited was founded in 1994 and is headquartered in Grand Cayman, the Cayman Islands.

About BR Biopharma

BRBI BR Partners S.A., through its subsidiaries, operates as an investment bank which specializes in providing financial services for entrepreneurs and families principally in Brazil. It offers financial advisory services for mergers and acquisitions, capital markets, board services, shareholders, special situations and restructuring, pre-IPO, and privatization; and wealth management services. BRBI BR Partners S.A. is based in S?o Paulo, Brazil.