RWAY
Runway Growth Finance Corp.
Financial - Credit Services
Market Cap$247M
5Y Perf.-49.5%
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Stock Comparison
RWAY vs HTGC
Revenue, margins, valuation, and 5-year total return — side by side.
HTGC
Hercules Capital, Inc.
Asset Management
Market Cap$3.07B
5Y Perf.-8.6%
RWAY vs HTGC — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | RWAY | HTGC |
|---|---|---|
| Industry | Financial - Credit Services | Asset Management |
| Market Cap | $247M | $3.07B |
| Revenue (TTM) | $140M | $547M |
| Net Income (TTM) | $32M | $289M |
| Gross Margin | 78.5% | 87.2% |
| Operating Margin | 54.7% | 66.7% |
| Forward P/E | 4.7x | 8.4x |
| Total Debt | $450M | $2.30B |
| Cash & Equiv. | $18M | $57M |
RWAY vs HTGC — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
RWAY
HTGC
| Stock | Oct 21 | May 26 | Return |
|---|---|---|---|
| Runway Growth Finan… (RWAY) | 100 | 50.5 | -49.5% |
| Hercules Capital, I… (HTGC) | 100 | 91.4 | -8.6% |
Price return only. Dividends and distributions are not included.
Quick Verdict: RWAY vs HTGC
Each card shows where this stock fits in a portfolio — not just who wins on paper.
Bottom line: HTGC leads in 5 of 7 categories, making it the strongest pick for growth and revenue expansion and profitability and margin quality. Runway Growth Finance Corp. is the stronger pick specifically for valuation and capital efficiency and dividend income and shareholder returns. As sector peers, any of these can serve as alternatives in the same allocation.
RWAY
Runway Growth Finance Corp.
The Banking Pick
RWAY is the clearest fit if your priority is income & stability and bank quality.
- Dividend streak 0 yrs, beta 0.72, yield 20.5%
- NIM 9.9% vs HTGC's 9.1%
- Lower P/E (4.7x vs 8.4x)
Best for: income & stability and bank quality
HTGC
Hercules Capital, Inc.
The Banking Pick
HTGC carries the broadest edge in this set and is the clearest fit for growth exposure and long-term compounding.
- Rev growth 27.0%, EPS growth 14.9%
- 171.6% 10Y total return vs RWAY's 6.0%
- Lower volatility, beta 0.69, current ratio 1.44x
Best for: growth exposure and long-term compounding
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | HTGC | 27.0% NII/revenue growth vs RWAY's 12.8% |
| Value | RWAY | Lower P/E (4.7x vs 8.4x) |
| Quality / Margins | HTGC | Efficiency ratio 0.2% vs RWAY's 0.2% (lower = leaner) |
| Stability / Safety | HTGC | Beta 0.69 vs RWAY's 0.72 |
| Dividends | RWAY | 20.5% yield, vs HTGC's 8.6% |
| Momentum (1Y) | HTGC | +6.6% vs RWAY's -8.7% |
| Efficiency (ROA) | HTGC | Efficiency ratio 0.2% vs RWAY's 0.2% |
RWAY vs HTGC — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
BEST OVERALLHTGCLAGGINGRWAY
RWAYRunway Growth Finance…
2leads
HTGCHercules Capital, Inc.
3leads
6 Total Categories
CATEGORYLEADERvs RWAYMETRICS WON
Income & Cash FlowRevenue, margins, and cash flow strength
HTGC4/5
Valuation MetricsMultiples, price ratios, and targets
RWAY5/5
Profitability & EfficiencyROE, ROIC, leverage, and quality scores
HTGC5/9
Total Returns1Y, 3Y, 5Y total returns with dividends
HTGC6/6
Risk & VolatilityBeta, volatility, and downside exposure
Tied
—
Analyst OutlookRatings, price targets, and dividends
RWAY1/1
Income & Cash Flow (Last 12 Months)
HTGC leads this category, winning 4 of 5 comparable metrics.
Income & Cash Flow (Last 12 Months)
HTGC is the larger business by revenue, generating $547M annually — 3.9x RWAY's $140M. HTGC is the more profitable business, keeping 62.1% of every revenue dollar as net income compared to RWAY's 24.3%.
| Metric | RWAYRunway Growth Fin… | HTGCHercules Capital,… |
|---|---|---|
| RevenueTrailing 12 months | $140M | $547M |
| EBITDAEarnings before interest/tax | $75M | $381M |
| Net IncomeAfter-tax profit | $32M | $289M |
| Free Cash FlowCash after capex | $54M | -$352M |
| Gross MarginGross profit ÷ Revenue | +78.5% | +87.2% |
| Operating MarginEBIT ÷ Revenue | +54.7% | +66.7% |
| Net MarginNet income ÷ Revenue | +24.3% | +62.1% |
| FCF MarginFCF ÷ Revenue | +132.9% | -77.8% |
| Rev. Growth (YoY)Latest quarter vs prior year | — | — |
| EPS Growth (YoY)Latest quarter vs prior year | -100.0% | -20.7% |
HTGC leads this category, winning 4 of 5 comparable metrics.
Valuation Metrics
RWAY leads this category, winning 5 of 5 comparable metrics.
Valuation Metrics
At 7.3x trailing earnings, RWAY trades at a 17% valuation discount to HTGC's 8.9x P/E. On an enterprise value basis, RWAY's 8.8x EV/EBITDA is more attractive than HTGC's 14.5x.
| Metric | RWAYRunway Growth Fin… | HTGCHercules Capital,… |
|---|---|---|
| Market CapShares × price | $247M | $3.1B |
| Enterprise ValueMkt cap + debt − cash | $679M | $5.3B |
| Trailing P/EPrice ÷ TTM EPS | 7.34x | 8.86x |
| Forward P/EPrice ÷ next-FY EPS est. | 4.74x | 8.36x |
| PEG RatioP/E ÷ EPS growth rate | — | — |
| EV / EBITDAEnterprise value multiple | 8.84x | 14.54x |
| Price / SalesMarket cap ÷ Revenue | 1.76x | 5.61x |
| Price / BookPrice ÷ Book value/share | 0.52x | 1.44x |
| Price / FCFMarket cap ÷ FCF | 1.32x | — |
RWAY leads this category, winning 5 of 5 comparable metrics.
Profitability & Efficiency
HTGC leads this category, winning 5 of 9 comparable metrics.
Profitability & Efficiency
HTGC delivers a 13.2% return on equity — every $100 of shareholder capital generates $13 in annual profit, vs $7 for RWAY. RWAY carries lower financial leverage with a 0.93x debt-to-equity ratio, signaling a more conservative balance sheet compared to HTGC's 1.04x. On the Piotroski fundamental quality scale (0–9), RWAY scores 7/9 vs HTGC's 5/9, reflecting strong financial health.
| Metric | RWAYRunway Growth Fin… | HTGCHercules Capital,… |
|---|---|---|
| ROE (TTM)Return on equity | +6.7% | +13.2% |
| ROA (TTM)Return on assets | +3.3% | +6.4% |
| ROICReturn on invested capital | +5.7% | +6.6% |
| ROCEReturn on capital employed | +7.5% | +8.8% |
| Piotroski ScoreFundamental quality 0–9 | 7 | 5 |
| Debt / EquityFinancial leverage | 0.93x | 1.04x |
| Net DebtTotal debt minus cash | $432M | $2.2B |
| Cash & Equiv.Liquid assets | $18M | $57M |
| Total DebtShort + long-term debt | $450M | $2.3B |
| Interest CoverageEBIT ÷ Interest expense | 1.69x | 4.34x |
HTGC leads this category, winning 5 of 9 comparable metrics.
Total Returns (Dividends Reinvested)
HTGC leads this category, winning 6 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in HTGC five years ago would be worth $14,683 today (with dividends reinvested), compared to $10,597 for RWAY. Over the past 12 months, HTGC leads with a +6.6% total return vs RWAY's -8.7%. The 3-year compound annual growth rate (CAGR) favors HTGC at 17.9% vs RWAY's 1.2% — a key indicator of consistent wealth creation.
| Metric | RWAYRunway Growth Fin… | HTGCHercules Capital,… |
|---|---|---|
| YTD ReturnYear-to-date | -20.8% | -10.6% |
| 1-Year ReturnPast 12 months | -8.7% | +6.6% |
| 3-Year ReturnCumulative with dividends | +3.5% | +63.9% |
| 5-Year ReturnCumulative with dividends | +6.0% | +46.8% |
| 10-Year ReturnCumulative with dividends | +6.0% | +171.6% |
| CAGR (3Y)Annualised 3-year return | +1.2% | +17.9% |
HTGC leads this category, winning 6 of 6 comparable metrics.
Risk & Volatility
Evenly matched — RWAY and HTGC each lead in 1 of 2 comparable metrics.
Risk & Volatility
HTGC is the less volatile stock with a 0.69 beta — it tends to amplify market swings less than RWAY's 0.72 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. HTGC currently trades 83.4% from its 52-week high vs RWAY's 59.9% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | RWAYRunway Growth Fin… | HTGCHercules Capital,… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.68x | 0.68x |
| 52-Week HighHighest price in past year | $11.41 | $19.67 |
| 52-Week LowLowest price in past year | $6.36 | $13.70 |
| % of 52W HighCurrent price vs 52-week peak | +59.9% | +83.4% |
| RSI (14)Momentum oscillator 0–100 | 50.8 | 64.7 |
| Avg Volume (50D)Average daily shares traded | 599K | 2.5M |
Evenly matched — RWAY and HTGC each lead in 1 of 2 comparable metrics.
Analyst Outlook
RWAY leads this category, winning 1 of 1 comparable metric.
Analyst Outlook
Wall Street rates RWAY as "Hold" and HTGC as "Buy". Consensus price targets imply 46.4% upside for RWAY (target: $10) vs 13.6% for HTGC (target: $19). For income investors, RWAY offers the higher dividend yield at 20.53% vs HTGC's 8.64%.
| Metric | RWAYRunway Growth Fin… | HTGCHercules Capital,… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Buy |
| Price TargetConsensus 12-month target | $10.00 | $18.63 |
| # AnalystsCovering analysts | 8 | 31 |
| Dividend YieldAnnual dividend ÷ price | +20.5% | +8.6% |
| Dividend StreakConsecutive years of raises | 0 | 0 |
| Dividend / ShareAnnual DPS | $1.40 | $1.42 |
| Buyback YieldShare repurchases ÷ mkt cap | +5.1% | +0.2% |
RWAY leads this category, winning 1 of 1 comparable metric.
Key Takeaway
HTGC leads in 3 of 6 categories (Income & Cash Flow, Profitability & Efficiency). RWAY leads in 2 (Valuation Metrics, Analyst Outlook). 1 tied.
Best OverallHercules Capital, Inc. (HTGC)Leads 3 of 6 categories
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RWAY vs HTGC: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is RWAY or HTGC a better buy right now?
For growth investors, Hercules Capital, Inc.
(HTGC) is the stronger pick with 27. 0% revenue growth year-over-year, versus 12. 8% for Runway Growth Finance Corp. (RWAY). Runway Growth Finance Corp. (RWAY) offers the better valuation at 7. 3x trailing P/E (4. 7x forward), making it the more compelling value choice. Analysts rate Hercules Capital, Inc. (HTGC) a "Buy" — based on 31 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — RWAY or HTGC?
On trailing P/E, Runway Growth Finance Corp.
(RWAY) is the cheapest at 7. 3x versus Hercules Capital, Inc. at 8. 9x. On forward P/E, Runway Growth Finance Corp. is actually cheaper at 4. 7x.
03Which is the better long-term investment — RWAY or HTGC?
Over the past 5 years, Hercules Capital, Inc.
(HTGC) delivered a total return of +46. 8%, compared to +6. 0% for Runway Growth Finance Corp. (RWAY). Over 10 years, the gap is even starker: HTGC returned +169. 5% versus RWAY's +3. 7%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — RWAY or HTGC?
By beta (market sensitivity over 5 years), Runway Growth Finance Corp.
(RWAY) is the lower-risk stock at 0. 68β versus Hercules Capital, Inc. 's 0. 68β — meaning HTGC is approximately 0% more volatile than RWAY relative to the S&P 500. On balance sheet safety, Runway Growth Finance Corp. (RWAY) carries a lower debt/equity ratio of 93% versus 104% for Hercules Capital, Inc. — giving it more financial flexibility in a downturn.
05Which is growing faster — RWAY or HTGC?
By revenue growth (latest reported year), Hercules Capital, Inc.
(HTGC) is pulling ahead at 27. 0% versus 12. 8% for Runway Growth Finance Corp. (RWAY). On earnings-per-share growth, the picture is similar: Hercules Capital, Inc. grew EPS 14. 9% year-over-year, compared to -50. 8% for Runway Growth Finance Corp.. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.
06Which has better profit margins — RWAY or HTGC?
Hercules Capital, Inc.
(HTGC) is the more profitable company, earning 62. 1% net margin versus 24. 3% for Runway Growth Finance Corp. — meaning it keeps 62. 1% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: HTGC leads at 66. 7% versus 54. 7% for RWAY. At the gross margin level — before operating expenses — HTGC leads at 87. 2%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
07Is RWAY or HTGC more undervalued right now?
On forward earnings alone, Runway Growth Finance Corp.
(RWAY) trades at 4. 7x forward P/E versus 8. 4x for Hercules Capital, Inc. — 3. 6x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for RWAY: 46. 4% to $10. 00.
08Which pays a better dividend — RWAY or HTGC?
All stocks in this comparison pay dividends.
Runway Growth Finance Corp. (RWAY) offers the highest yield at 20. 5%, versus 8. 6% for Hercules Capital, Inc. (HTGC).
09Is RWAY or HTGC better for a retirement portfolio?
For long-horizon retirement investors, Hercules Capital, Inc.
(HTGC) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 68), 8. 6% yield, +169. 5% 10Y return). Both have compounded well over 10 years (HTGC: +169. 5%, RWAY: +3. 7%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
10What are the main differences between RWAY and HTGC?
Both stocks operate in the Financial Services sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.
In terms of investment character: RWAY is a small-cap deep-value stock; HTGC is a small-cap high-growth stock. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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Revenue Growth>
%
(RWAY: 12.8% · HTGC: 27.0%)Net Margin>
%
(RWAY: 24.3% · HTGC: 62.1%)P/E Ratio<
x
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