MMA Capital Holdings Inc. (MMAC) and Hercules Capital Inc. (NYSE:HTGC) Comparing side by side

This is a contrast between MMA Capital Holdings Inc. (NASDAQ:MMAC) and Hercules Capital Inc. (NYSE:HTGC) based on their institutional ownership, profitability, risk, dividends, analyst recommendations, earnings and valuation. The two companies are Mortgage Investment and they also compete with each other.

Valuation & Earnings

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
MMA Capital Holdings Inc. 13.14M 14.54 25.65M 2.32 12.40
Hercules Capital Inc. 207.75M 5.71 75.92M 0.83 16.23

Table 1 demonstrates MMA Capital Holdings Inc. and Hercules Capital Inc.’s top-line revenue, earnings per share (EPS) and valuation. Hercules Capital Inc. is observed to has lower earnings, but higher revenue than MMA Capital Holdings Inc. When business has lower P/E means it is more affordable than its counterpart currently. MMA Capital Holdings Inc. is currently more affordable than Hercules Capital Inc., because it’s trading at a lower P/E ratio.

Profitability

Table 2 provides MMA Capital Holdings Inc. and Hercules Capital Inc.’s return on equity, net margins and return on assets.

Net Margins Return on Equity Return on Assets
MMA Capital Holdings Inc. 195.21% 20.2% 8%
Hercules Capital Inc. 36.54% 0% 0%

Dividends

The dividend yield for Hercules Capital Inc. is 10.01% while its annual dividend payout is $1.24 per share. No dividend is paid out for MMA Capital Holdings Inc.

Analyst Ratings

MMA Capital Holdings Inc. and Hercules Capital Inc. Recommendations and Ratings are available on the next table.

Sell Ratings Hold Ratings Buy Ratings Rating Score
MMA Capital Holdings Inc. 0 0 0 0.00
Hercules Capital Inc. 0 1 2 2.67

Hercules Capital Inc. on the other hand boasts of a $13.88 average price target and a 12.85% potential upside.

Insider & Institutional Ownership

Roughly 9.9% of MMA Capital Holdings Inc. shares are owned by institutional investors while 37.6% of Hercules Capital Inc. are owned by institutional investors. MMA Capital Holdings Inc.’s share owned by insiders are 12.8%. Comparatively, 3.48% are Hercules Capital Inc.’s share owned by insiders.

Performance

In this table we show the Weekly, Monthly, Quarterly, Half Yearly, Yearly and YTD Performance of both pretenders.

Performance (W) Performance (M) Performance (Q) Performance (HY) Performance (Y) Performance (YTD)
MMA Capital Holdings Inc. 0.69% 3.8% 6.3% 8.61% 4.36% 13.89%
Hercules Capital Inc. -4.06% 2.51% 9.78% 0.01% 13.47% 21.9%

For the past year MMA Capital Holdings Inc. was less bullish than Hercules Capital Inc.

Summary

Hercules Capital Inc. beats on 8 of the 14 factors MMA Capital Holdings Inc.

MMA Capital Management, LLC creates and manages investments in housing and renewable energy sectors in the United States and internationally. Its bond portfolio primarily comprises multifamily tax-exempt bonds, as well as other real estate related bond investments. The company offers leveraged bonds; low-income housing tax credits; asset management and administrative services to a limited liability company and a commercial bank; guarantees to third parties related to the receipt of tax credits; and debt capital to develop build, and operate renewable energy systems. It also raises, invests in, and manages private real estate funds, which invests in residential real estate in South Africa. The company was formerly known as Municipal Mortgage & Equity, LLC and changed its name to MMA Capital Management, LLC in September 2014. MMA Capital Management, LLC was founded in 1995 and is headquartered in Baltimore, Maryland.

Hercules Capital, Inc., formerly known as Hercules Technology Growth Capital, Inc., is a business development company specializing in providing venture debt, debt, senior secured loans, and growth capital to privately held venture capital-backed companies at all stages of development including select publicly listed companies and select special opportunity lower middle market companies that require additional capital to fund acquisitions, recapitalizations and refinancings and established-stage companies. The firm provides growth capital financing solutions for capital extension; management buy-out and corporate spin-out financing solutions; company, asset specific, or intellectual property acquisition; convertible, subordinated and/or mezzanine loans; domestic and international expansion; vendor financing; revenue acceleration by sales and marketing development, and manufacturing expansion. It provides asset-based financing with a focus on cash flow; accounts receivable facilities; equipment loans/leases; equipment acquisition; facilities build-out and/or expansion; working capital revolving lines of credit; inventory. The firm also provides bridge financing to IPO or mergers and acquisitions or technology acquisition; dividend recapitalizations and other sources of investor liquidity; cash flow financing to protect against share price volatility; competitor acquisition; pre-IPO financing for extra cash on the balance sheet; public company financing to continue asset growth and production capacity; public company financing to continue asset growth and production capacity; short-term bridge financing; and strategic and intellectual property acquisition financings. It also focuses on customized financing solutions, seed and early stage financing. The firm invests primarily in structured debt with warrants and, to a lesser extent, in senior debt and equity investments. The firm generally seeks to invest in companies that have been operating for at least six to 12 months prior to the date of their investment. It prefers to invest in technology, energy technology, and life sciences. Within technology the firm focuses on advanced specialty materials and chemicals; communication and networking, consumer and business products; consumer products and services, digital media and consumer internet; electronics and computer hardware; enterprise software and services; healthcare services; information services; internet consumer and business services; media, content and information; mobile; resource management; security software; semiconductors; semiconductors and hardware; and software sector. Within energy technology, it invests in agriculture; clean technology; energy and renewable technology, fuels and power technology; geothermal; smart grid and energy efficiency and monitoring technologies; solar; and wind. Within life sciences, the firm invests in biopharmaceuticals; biotechnology tools; diagnostics; drug discovery, development and delivery; medical devices and equipment; surgical devices; therapeutics; pharma services; and specialty pharmaceuticals. It also invests in educational services. The firm invests primarily in United States based companies and considers investment in the West Coast, Mid-Atlantic regions, Southeast and Midwest; particularly in the areas of software, biotech and information services. It invests generally between $1 million to $40 million in companies with revenues of $10 million to $200 million, generating EBITDA of $2 million to $15 million, focused primarily on business services, communications, electronics, hardware, and healthcare services. The firm invests primarily in private companies but also have investments in public companies. For equity investments, the firm seeks to represent a controlling interest in its portfolio companies which may exceed 25% of the voting securities of such companies. The firm seeks to invest a limited portion of its assets in equipment-based loans to early-stage prospective portfolio companies. These loans are generally for amounts up to $3.0 million but may be up to $15.0 million for certain energy technology venture investments. The firm allows certain debt investments have the right to convert a portion of the debt investment into equity. It also co-invests with other private equity firms. The firm seeks to exit its investments through initial public offering, a private sale of equity interest to a third party, a merger or an acquisition of the company or a purchase of the equity position by the company or one of its stockholders. The firm has structured debt with warrants which typically have maturities of between two and seven years with an average of three years; senior debt with an investment horizon of less than three years; equipment loans with an investment horizon ranging from three to four years; and equity related securities with an investment horizon ranging from three to seven years. Hercules Capital, Inc. was founded in December 2003 and is based in Palo Alto, California with additional offices in North America.