Small Cap Stocks with High Profitability

  on Jun 26,2012 Posted in Investment Ideas ,Premium ,Small Cap Ideas
 
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Profit is a very important notion for any business. Profit is the financial return that business aims to attain to mitigate the risk they take. The profit earned by a business can be used to assess the success of that investment.

Profit is also a significant factor to other providers of finance to a business. Investors look for firms that have good returns.
Profitability ratios are profit margin, return on assets and return on equity. These are used to evaluate a business’s ability to generate earnings as compared to its expenses and other relevant costs incurred during a specific period of time. For most of these ratios, having a higher value relative to a competitor’s ratio or the same ratio from a preceding period indicates that the company is doing well.

Here we are going to discuss some stocks and their profitability by mentioning their return on assets and return on equity.

Newcastle Investment Corp. (NYSE:NCT)
Newcastle Investment Corp. operates as a real estate investment and finance company that invests in and manages a portfolio consisting primarily of real estate securities. NCT has net profit margin of 75.42% and operating margin of 60.42%. NCT gained 5.77% return on assets, 157.29% return on equity and its return on investments was 6.16%.

Capstead Mortgage Corporation (NYSE:CMO)
Capstead Mortgage Corporation operates as a self-managed real estate investment trust. Capstead Mortgage Corporation has net profit margin of 66.67% and operating margin of 66.67%. CMO generated 5.77% return on assets, 157.29% return on equity and its return on investments was 6.16%. Its earnings per share are $1.78 and price to earnings ratio ended at 7.85.

Prospect Capital Corporation (NASDAQ:PSEC)
Prospect Capital Corporation is a private equity firm specializing in late venture, middle market, mature recapitalizations, growth capital, development, and bridge transactions. It has earnings per share of $1.67 with net profit of 66.11% and its operating margin was 55.59%. PSEC gained 11.51%, 16.27% returns on equity and its return on investments was 12.62%. Its price to earnings ratio ended at 6.77.

Silvercorp Metals Inc. (USA) (NYSE:SVM)
Silvercorp Metals Inc. engages in the acquisition, exploration, development, and operation of silver mineral properties in China and Canada. Silvercorp Metals Inc has earnings per share of $0.42 with net profit of 42.54% and its operating margin was 59.56%. SVM gained 18.71%, 17.70% returns on equity and its return on investments was 23.13%. Its price to earnings ratio ended at 13.50.

 

 



 

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