Analyzing Eagle Point Credit (NYSE:ECC) & Victory Square Technologies (OTCMKTS:VSQTF)

Victory Square Technologies (OTCMKTS:VSQTF) and Eagle Point Credit (NYSE:ECC) are both small-cap business services companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, institutional ownership, analyst recommendations, risk, valuation, dividends and profitability.

Analyst Ratings

This is a breakdown of recent ratings for Victory Square Technologies and Eagle Point Credit, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Victory Square Technologies	0	0	0	0	0.00
Eagle Point Credit	0	1	0	0	2.00

Eagle Point Credit has a consensus price target of $10.00, suggesting a potential upside of 14.29%. Given Eagle Point Credit’s stronger consensus rating and higher possible upside, analysts clearly believe Eagle Point Credit is more favorable than Victory Square Technologies.

Insider & Institutional Ownership

19.5% of Eagle Point Credit shares are owned by institutional investors. 0.2% of Eagle Point Credit shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Victory Square Technologies and Eagle Point Credit”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Victory Square Technologies	$8.93 million	1.52	-$10.49 million	($0.01)	-13.89
Eagle Point Credit	$130.04 million	5.18	$118.75 million	$0.80	10.94

Eagle Point Credit has higher revenue and earnings than Victory Square Technologies. Victory Square Technologies is trading at a lower price-to-earnings ratio than Eagle Point Credit, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Victory Square Technologies has a beta of 1.53, meaning that its share price is 53% more volatile than the S&P 500. Comparatively, Eagle Point Credit has a beta of 0.75, meaning that its share price is 25% less volatile than the S&P 500.

Profitability

This table compares Victory Square Technologies and Eagle Point Credit’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Victory Square Technologies	-10.47%	-788.48%	-14.85%
Eagle Point Credit	36.60%	12.87%	9.17%

Summary

Eagle Point Credit beats Victory Square Technologies on 12 of the 13 factors compared between the two stocks.

About Victory Square Technologies

Victory Square Technologies Inc. is a private equity and venture capital firm specializing in incubation, acquisition and invests in startups, Early stage and provides the senior leadership and resources needed to growth. Through its portfolio companies it focuses on technologies in blockchain, digital health, web3, creator economy, metaverse, machine learning, climate tech, youth, mental health, healthcare, special needs, technology, First Nation, artificial intelligence, and virtual reality/augmented reality, health, mobile gaming, film, esports, cannabis, and education. The company formerly known as Fantasy 6 Sports Inc. and changed its name to Victory Square Technologies Inc. in June 2017. It prefers to take minority investment in the companies. Victory Square Technologies Inc. was incorporated in 2015 and is headquartered in Vancouver, Canada with an additional office in Lewes, Delaware.

About Eagle Point Credit

Eagle Point Credit Company Inc. is a closed ended fund launched and managed by Eagle Point Credit Management LLC. It invests in fixed income markets of the United States. The fund invests equity and junior debt tranches of collateralized loan obligations consisting primarily of below investment grade U.S. senior secured loans. Eagle Point Credit Company Inc. was formed on March 24, 2014 and is domiciled in the United States.