Sprott (NYSE:SII) & RocketFuel Blockchain (OTCMKTS:RKFL) Critical Comparison

RocketFuel Blockchain (OTCMKTS:RKFL) and Sprott (NYSE:SII) are both small-cap business services companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, valuation, analyst recommendations, earnings, profitability, institutional ownership and dividends.

Analyst Recommendations

This is a summary of recent ratings and price targets for RocketFuel Blockchain and Sprott, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RocketFuel Blockchain	0	0	0	0	N/A
Sprott	0	0	0	0	N/A

Insider & Institutional Ownership

7.2% of RocketFuel Blockchain shares are held by institutional investors. Comparatively, 28.3% of Sprott shares are held by institutional investors. 28.7% of RocketFuel Blockchain shares are held by insiders. Comparatively, 18.3% of Sprott shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Risk and Volatility

RocketFuel Blockchain has a beta of 0.32, suggesting that its share price is 68% less volatile than the S&P 500. Comparatively, Sprott has a beta of 1.08, suggesting that its share price is 8% more volatile than the S&P 500.

Profitability

This table compares RocketFuel Blockchain and Sprott’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
RocketFuel Blockchain	N/A	N/A	N/A
Sprott	27.34%	14.19%	10.98%

Earnings & Valuation

This table compares RocketFuel Blockchain and Sprott’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RocketFuel Blockchain	$200,000.00	5.38	-$3.78 million	($0.12)	-0.27
Sprott	$169.02 million	6.26	$41.80 million	$1.65	24.79

Sprott has higher revenue and earnings than RocketFuel Blockchain. RocketFuel Blockchain is trading at a lower price-to-earnings ratio than Sprott, indicating that it is currently the more affordable of the two stocks.

Summary

Sprott beats RocketFuel Blockchain on 10 of the 11 factors compared between the two stocks.

About RocketFuel Blockchain

RocketFuel Blockchain, Inc. provides payment and check-out systems for shoppers on e-commerce sites using cryptocurrencies, bitcoin, and direct bank transfers. It also offers payout solutions, cross-border B2B transfer solutions, and other solutions, as well as invoicing and crypto payments services. The company has a strategic partnership with ACI Worldwide, Inc. to offer the cryptocurrency payment solution available to customers through ACI portals. RocketFuel Blockchain, Inc. was incorporated in 2018 and is headquartered in San Francisco, California.

About Sprott

Sprott Inc. is a publicly owned asset management holding company. Through its subsidiaries, the firm provides asset management, portfolio management, wealth management, fund management, and administrative and consulting services to its clients. It offers mutual funds, hedge funds, and offshore funds, along with managed accounts. Further, the firm also provides broker-dealer activities. Sprott Inc. was formed on February 13, 2008 and is based in Toronto, Canada.