Reviewing Arlington Asset Investment Corp. (AI)’s and Hercules Capital Inc. (NYSE:HTGC)’s results

Arlington Asset Investment Corp. (NYSE:AI) and Hercules Capital Inc. (NYSE:HTGC), are influenced by compare since they are both players in the Mortgage Investment. These factors are particularly influence the profitability, analyst recommendations, institutional ownership, risk, dividends, earnings and valuation of the two firms.

Earnings & Valuation

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Arlington Asset Investment Corp. 7 -4.24 N/A -0.67 0.00
Hercules Capital Inc. 13 5.84 N/A 1.40 9.28

In table 1 we can see Arlington Asset Investment Corp. and Hercules Capital Inc.’s gross revenue, earnings per share (EPS) and valuation.

Profitability

Table 2 shows us the net margins, return on assets and return on equity of both companies.

Net Margins Return on Equity Return on Assets
Arlington Asset Investment Corp. 0.00% -6.3% -0.4%
Hercules Capital Inc. 0.00% 0% 0%

Analyst Recommendations

In next table is delivered Arlington Asset Investment Corp. and Hercules Capital Inc.’s ratings and recommendations.

Sell Ratings Hold Ratings Buy Ratings Rating Score
Arlington Asset Investment Corp. 0 0 0 0.00
Hercules Capital Inc. 0 1 0 2.00

Competitively the consensus target price of Hercules Capital Inc. is $11.5, which is potential -13.27% downside.

Insider & Institutional Ownership

Institutional investors owned 43.5% of Arlington Asset Investment Corp. shares and 38.23% of Hercules Capital Inc. shares. Insiders owned roughly 2% of Arlington Asset Investment Corp.’s shares. Competitively, 3.53% 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)
Arlington Asset Investment Corp. -1.05% -3.66% -16.92% -23.93% -36.85% -9.12%
Hercules Capital Inc. -0.15% 1.17% 0.46% 0.15% -3.91% 17.55%

For the past year Arlington Asset Investment Corp. has -9.12% weaker performance while Hercules Capital Inc. has 17.55% stronger performance.

Summary

Hercules Capital Inc. beats on 8 of the 8 factors Arlington Asset Investment Corp.

Arlington Asset Investment Corp., an investment firm, acquires mortgage-related and other assets. The company acquires on a leveraged basis residential mortgage-backed securities (MBS) that are issued by the United States (U.S.) government agency, or guaranteed as to principal and interest by U.S. government agencies, or U.S. government-sponsored entities. It also acquires MBS issued by private organizations. The company was formerly known as Friedman, Billings, Ramsey Group, Inc. Arlington Asset Investment Corp. was founded in 1989 and is based in Arlington, Virginia.

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.

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