Montanaro European Smaller (MTE) Competitors

Capital Gearing (LON:CGT) and Montanaro European Smaller (LON:MTE) are both small-cap financial services companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, community ranking, profitability, valuation, media sentiment, analyst recommendations, earnings, risk and institutional ownership.

Is CGT or MTE more profitable?

Montanaro European Smaller has a net margin of 80.23% compared to Capital Gearing's net margin of 0.00%. Montanaro European Smaller's return on equity of 4.78% beat Capital Gearing's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Capital Gearing	N/A	-4.45%	-2.63%
Montanaro European Smaller	80.23%	4.78%	2.99%

Does the media prefer CGT or MTE?

In the previous week, Capital Gearing had 4 more articles in the media than Montanaro European Smaller. MarketBeat recorded 4 mentions for Capital Gearing and 0 mentions for Montanaro European Smaller. Capital Gearing's average media sentiment score of 1.30 beat Montanaro European Smaller's score of 0.00 indicating that Capital Gearing is being referred to more favorably in the media.

Company	Overall Sentiment
Capital Gearing	Positive
Montanaro European Smaller	Neutral

Which has more risk and volatility, CGT or MTE?

Capital Gearing has a beta of 0.23, meaning that its stock price is 77% less volatile than the S&P 500. Comparatively, Montanaro European Smaller has a beta of 1.17, meaning that its stock price is 17% more volatile than the S&P 500.

Does the MarketBeat Community favor CGT or MTE?

Capital Gearing received 70 more outperform votes than Montanaro European Smaller when rated by MarketBeat users. Likewise, 77.56% of users gave Capital Gearing an outperform vote while only 59.30% of users gave Montanaro European Smaller an outperform vote.

Company	Underperform	Outperform
Capital Gearing	Outperform Votes 121 77.56%	Underperform Votes 35 22.44%
Montanaro European Smaller	Outperform Votes 51 59.30%	Underperform Votes 35 40.70%

Which has better valuation and earnings, CGT or MTE?

Montanaro European Smaller has higher revenue and earnings than Capital Gearing. Capital Gearing is trading at a lower price-to-earnings ratio than Montanaro European Smaller, indicating that it is currently the more affordable of the two stocks.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Capital Gearing	-£9.86M	-103.12	-£19.11M	-£0.63	-7,555.56
Montanaro European Smaller	£18.23M	14.18	£14.63M	£0.08	1,706.25

Is CGT or MTE a better dividend stock?

Capital Gearing pays an annual dividend of GBX 60 per share and has a dividend yield of 1.3%. Montanaro European Smaller pays an annual dividend of GBX 1 per share and has a dividend yield of 0.7%. Capital Gearing pays out -9,523.8% of its earnings in the form of a dividend. Montanaro European Smaller pays out 1,250.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Capital Gearing is clearly the better dividend stock, given its higher yield and lower payout ratio.

Do insiders & institutionals believe in CGT or MTE?

16.2% of Capital Gearing shares are owned by institutional investors. Comparatively, 21.1% of Montanaro European Smaller shares are owned by institutional investors. 7.0% of Capital Gearing shares are owned by company insiders. Comparatively, 1.4% of Montanaro European Smaller shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Montanaro European Smaller beats Capital Gearing on 10 of the 17 factors compared between the two stocks.