Analyzing Lendway (NASDAQ:LDWY) and S&W Seed (NASDAQ:SANW)

Lendway (NASDAQ:LDWY) and S&W Seed (NASDAQ:SANW) 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 analyst recommendations, risk, dividends, institutional ownership, earnings, profitability and valuation.

Valuation and Earnings

This table compares Lendway and S&W Seed”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lendway	$31.58 million	0.21	$2.41 million	($1.98)	-1.94
S&W Seed	$54.81 million	0.30	-$30.03 million	($15.61)	-0.49

Lendway has higher earnings, but lower revenue than S&W Seed. Lendway is trading at a lower price-to-earnings ratio than S&W Seed, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Lendway has a beta of 1.97, suggesting that its share price is 97% more volatile than the S&P 500. Comparatively, S&W Seed has a beta of 1.88, suggesting that its share price is 88% more volatile than the S&P 500.

Profitability

This table compares Lendway and S&W Seed’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lendway	N/A	-21.56%	-4.32%
S&W Seed	-76.30%	-51.47%	-18.21%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Lendway and S&W Seed, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lendway	0	0	0	0	0.00
S&W Seed	0	0	1	0	3.00

S&W Seed has a consensus target price of $35.00, suggesting a potential upside of 356.92%. Given S&W Seed’s stronger consensus rating and higher probable upside, analysts clearly believe S&W Seed is more favorable than Lendway.

Institutional and Insider Ownership

6.6% of Lendway shares are held by institutional investors. Comparatively, 61.7% of S&W Seed shares are held by institutional investors. 13.2% of Lendway shares are held by insiders. Comparatively, 11.4% of S&W Seed shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

About Lendway

Lendway, Inc. operates as a specialty agricultural and finance company focusing on making and managing its agricultural investments in the United States and internationally. It owns and operates FarmlandCredit.com, a non-bank lending business that seeks to purchase existing loans and/or originate and fund new loans domestically. The company was formerly known as Insignia Systems, Inc. and changed its name to Lendway, Inc. in August 2023. The company was incorporated in 1990 and is headquartered in Minneapolis, Minnesota.

About S&W Seed

S&W Seed Co. engages in the breeding, production, and sale of stevia and alfalfa seeds. The company was founded in 1980 and is headquartered in Longmont, CO.