Benev Capital (OTCMKTS:BEVFF) & Shanghai Industrial (OTCMKTS:SGHIY) Financial Review

Benev Capital (OTCMKTS:BEVFF) and Shanghai Industrial (OTCMKTS:SGHIY) are both small-cap multi-sector conglomerates companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, earnings, institutional ownership, dividends, analyst recommendations, valuation and risk.

Dividends

Benev Capital pays an annual dividend of $0.20 per share and has a dividend yield of 7.9%. Shanghai Industrial pays an annual dividend of $1.28 per share and has a dividend yield of 8.6%. Benev Capital pays out 166.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Earnings and Valuation

This table compares Benev Capital and Shanghai Industrial”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Benev Capital	$47.44 million	9.05	$19.43 million	$0.12	21.08
Shanghai Industrial	$3.71 billion	0.43	$359.94 million	N/A	N/A

Shanghai Industrial has higher revenue and earnings than Benev Capital.

Analyst Ratings

This is a summary of current recommendations and price targets for Benev Capital and Shanghai Industrial, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Benev Capital	0	1	0	0	2.00
Shanghai Industrial	0	0	0	0	0.00

Profitability

This table compares Benev Capital and Shanghai Industrial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Benev Capital	41.88%	11.86%	5.83%
Shanghai Industrial	N/A	N/A	N/A

Risk and Volatility

Benev Capital has a beta of 0.9, indicating that its stock price is 10% less volatile than the S&P 500. Comparatively, Shanghai Industrial has a beta of 0.03, indicating that its stock price is 97% less volatile than the S&P 500.

Summary

Benev Capital beats Shanghai Industrial on 6 of the 10 factors compared between the two stocks.

About Benev Capital

Diversified Royalty Corp., a multi-royalty corporation, engages in the acquisition of royalties from multi-location businesses and franchisors in North America. It owns the Sutton, Mr. Lube + Tires, AIR MILES, Mr. Mikes, Nurse Next Door, Oxford Learning Centres, Stratus Building Solutions, and BarBurrito trademarks. The company was formerly known as BENEV Capital Inc. and changed its name to Diversified Royalty Corp. in September 2014. Diversified Royalty Corp. was founded in 1960 and is headquartered in Vancouver, Canada.

About Shanghai Industrial

Shanghai Industrial Holdings Limited, an investment holding company, engages in the infrastructure and environmental protection, real estate, consumer products, and comprehensive healthcare operations businesses in Hong Kong, China, rest of Asia, and internationally. The company invests in toll road projects and water services/clean energy businesses. It engages in the property development and investment activities, as well as operates hotel. In addition, the company manufactures and sells cigarettes, packaging materials, and printed products; and pharmaceutical and healthcare products. Further, the company involved in the raw materials sourcing business; provision of distribution and supply chain solutions services; and operation and franchise of a network of retail pharmacies. The company was incorporated in 1996 and is based in Wan Chai, Hong Kong. Shanghai Industrial Holdings Limited operates as a subsidiary of Shanghai Industrial Investment (Holding) Co., Ltd.