Critical Survey: Neon Bloom (OTCMKTS:NBCO) vs. Burford Capital (NYSE:BUR)

Neon Bloom (OTCMKTS:NBCO) and Burford Capital (NYSE:BUR) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, dividends, institutional ownership, profitability, analyst recommendations, earnings and risk.

Analyst Recommendations

This is a summary of current recommendations and price targets for Neon Bloom and Burford Capital, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Neon Bloom	0	0	0	0	0.00
Burford Capital	0	0	2	1	3.33

Burford Capital has a consensus price target of $18.00, indicating a potential upside of 68.93%. Given Burford Capital’s stronger consensus rating and higher probable upside, analysts plainly believe Burford Capital is more favorable than Neon Bloom.

Profitability

This table compares Neon Bloom and Burford Capital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Neon Bloom	N/A	N/A	N/A
Burford Capital	37.08%	7.48%	3.88%

Valuation & Earnings

This table compares Neon Bloom and Burford Capital”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Neon Bloom	$32.13 million	0.09	N/A	N/A	N/A
Burford Capital	$546.09 million	4.27	$146.48 million	$1.08	9.87

Burford Capital has higher revenue and earnings than Neon Bloom.

Risk and Volatility

Neon Bloom has a beta of -0.27, indicating that its share price is 127% less volatile than the S&P 500. Comparatively, Burford Capital has a beta of 0.58, indicating that its share price is 42% less volatile than the S&P 500.

Summary

Burford Capital beats Neon Bloom on 10 of the 10 factors compared between the two stocks.

About Neon Bloom

Neon Bloom, Inc. is a principal investment firm specializing in acquisitions. The firm primarily invests in innovative agriculture and ancillary technology products and services across the globe. Neon Bloom, Inc was founded in 2015 and is based in New York, New York.

About Burford Capital

Burford Capital Limited provides legal finance products and services worldwide. The company operates through two segments, Capital Provision, and Asset Management and Other Provision. The Capital Provision segment provides capital to the legal industry or in connection with legal matters directly and through investment in private funds; legal risk management services; lower risk legal finance business focusing on pre-settlement litigation matters with lower risk and lower expected returns; post-settlement finance; and complex strategies in which it acts as a principal and acquires assets that are mispriced. The Asset Management and Other Services segment provides services to the legal industry, including litigation insurance. Burford Capital Limited was incorporated in 2009 and is based in Saint Peter Port, Guernsey.