NMFC vs. CSWC, GAIN, PSEC, PNNT, TPVG, SCM, GBDC, ELME, VRE, and NWBI
Should you be buying New Mountain Finance stock or one of its competitors? The main competitors of New Mountain Finance include Capital Southwest (CSWC), Gladstone Investment (GAIN), Prospect Capital (PSEC), PennantPark Investment (PNNT), TriplePoint Venture Growth BDC (TPVG), Stellus Capital Investment (SCM), Golub Capital BDC (GBDC), Elme Communities (ELME), Veris Residential (VRE), and Northwest Bancshares (NWBI). These companies are all part of the "finance" sector.
Capital Southwest (NASDAQ:CSWC) and New Mountain Finance (NASDAQ:NMFC) are both small-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, community ranking, valuation, institutional ownership, dividends, media sentiment, profitability, earnings and risk.
Capital Southwest pays an annual dividend of $2.28 per share and has a dividend yield of 8.7%. New Mountain Finance pays an annual dividend of $1.28 per share and has a dividend yield of 10.1%. Capital Southwest pays out 97.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. New Mountain Finance pays out 115.3% 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 Southwest has increased its dividend for 1 consecutive years.
Capital Southwest has a beta of 1.19, indicating that its stock price is 19% more volatile than the S&P 500. Comparatively, New Mountain Finance has a beta of 1.11, indicating that its stock price is 11% more volatile than the S&P 500.
23.4% of Capital Southwest shares are owned by institutional investors. Comparatively, 32.1% of New Mountain Finance shares are owned by institutional investors. 4.8% of Capital Southwest shares are owned by insiders. Comparatively, 10.2% of New Mountain Finance shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
In the previous week, New Mountain Finance had 11 more articles in the media than Capital Southwest. MarketBeat recorded 14 mentions for New Mountain Finance and 3 mentions for Capital Southwest. New Mountain Finance's average media sentiment score of 0.83 beat Capital Southwest's score of -0.20 indicating that Capital Southwest is being referred to more favorably in the media.
Capital Southwest has a net margin of 52.16% compared to Capital Southwest's net margin of 31.67%. New Mountain Finance's return on equity of 15.82% beat Capital Southwest's return on equity.
New Mountain Finance has higher revenue and earnings than Capital Southwest. Capital Southwest is trading at a lower price-to-earnings ratio than New Mountain Finance, indicating that it is currently the more affordable of the two stocks.
Capital Southwest received 234 more outperform votes than New Mountain Finance when rated by MarketBeat users. Likewise, 62.18% of users gave Capital Southwest an outperform vote while only 27.27% of users gave New Mountain Finance an outperform vote.
Capital Southwest currently has a consensus price target of $25.50, suggesting a potential downside of 2.56%. New Mountain Finance has a consensus price target of $12.50, suggesting a potential downside of 1.57%. Given Capital Southwest's higher possible upside, analysts clearly believe New Mountain Finance is more favorable than Capital Southwest.
Summary
Capital Southwest beats New Mountain Finance on 13 of the 21 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding NMFC and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NASDAQ and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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