PSEC vs. GBDC, CSWC, NMFC, GSHD, FCPT, BANC, HPH, SFNC, PTY, and FIHL
Should you be buying Prospect Capital stock or one of its competitors? The main competitors of Prospect Capital include Golub Capital BDC (GBDC), Capital Southwest (CSWC), New Mountain Finance (NMFC), Goosehead Insurance (GSHD), Four Corners Property Trust (FCPT), Banc of California (BANC), Highest Performances (HPH), Simmons First National (SFNC), PIMCO Corporate & Income Opportunity Fund (PTY), and Fidelis Insurance (FIHL). These companies are all part of the "finance" sector.
Prospect Capital (NASDAQ:PSEC) and Golub Capital BDC (NASDAQ:GBDC) are both mid-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, dividends, valuation, profitability, risk, community ranking, analyst recommendations, media sentiment and institutional ownership.
9.1% of Prospect Capital shares are owned by institutional investors. Comparatively, 42.4% of Golub Capital BDC shares are owned by institutional investors. 26.7% of Prospect Capital shares are owned by insiders. Comparatively, 2.7% of Golub Capital BDC shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Golub Capital BDC has lower revenue, but higher earnings than Prospect Capital. Prospect Capital is trading at a lower price-to-earnings ratio than Golub Capital BDC, indicating that it is currently the more affordable of the two stocks.
Prospect Capital pays an annual dividend of $0.72 per share and has a dividend yield of 13.8%. Golub Capital BDC pays an annual dividend of $1.56 per share and has a dividend yield of 9.3%. Prospect Capital pays out -360.0% of its earnings in the form of a dividend. Golub Capital BDC pays out 85.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Prospect Capital is clearly the better dividend stock, given its higher yield and lower payout ratio.
Prospect Capital presently has a consensus target price of $5.75, indicating a potential upside of 10.15%. Golub Capital BDC has a consensus target price of $16.40, indicating a potential downside of 2.61%. Given Prospect Capital's higher probable upside, research analysts plainly believe Prospect Capital is more favorable than Golub Capital BDC.
Prospect Capital received 19 more outperform votes than Golub Capital BDC when rated by MarketBeat users. However, 56.60% of users gave Golub Capital BDC an outperform vote while only 52.30% of users gave Prospect Capital an outperform vote.
Golub Capital BDC has a net margin of 48.94% compared to Prospect Capital's net margin of -1.47%. Prospect Capital's return on equity of 13.48% beat Golub Capital BDC's return on equity.
Prospect Capital has a beta of 1, meaning that its stock price has a similar volatility profile to the S&P 500.Comparatively, Golub Capital BDC has a beta of 0.55, meaning that its stock price is 45% less volatile than the S&P 500.
In the previous week, Golub Capital BDC had 2 more articles in the media than Prospect Capital. MarketBeat recorded 6 mentions for Golub Capital BDC and 4 mentions for Prospect Capital. Prospect Capital's average media sentiment score of 1.26 beat Golub Capital BDC's score of 0.72 indicating that Prospect Capital is being referred to more favorably in the media.
Summary
Prospect Capital and Golub Capital BDC tied by winning 10 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding PSEC 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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