NMFC vs. CSWC, PFLT, TSLX, GAIN, PNNT, TPVG, SCM, PSEC, GBDC, and FBNC
Should you be buying New Mountain Finance stock or one of its competitors? The main competitors of New Mountain Finance include Capital Southwest (CSWC), PennantPark Floating Rate Capital (PFLT), Sixth Street Specialty Lending (TSLX), Gladstone Investment (GAIN), PennantPark Investment (PNNT), TriplePoint Venture Growth BDC (TPVG), Stellus Capital Investment (SCM), Prospect Capital (PSEC), Golub Capital BDC (GBDC), and First Bancorp (FBNC). These companies are all part of the "finance" sector.
New Mountain Finance (NASDAQ:NMFC) and Capital Southwest (NASDAQ:CSWC) are both small-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, media sentiment, profitability, earnings, institutional ownership, community ranking, valuation, dividends and risk.
New Mountain Finance pays an annual dividend of $1.28 per share and has a dividend yield of 10.2%. Capital Southwest pays an annual dividend of $2.28 per share and has a dividend yield of 9.0%. 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 pays out 111.2% 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 has a beta of 1.11, suggesting that its stock price is 11% more volatile than the S&P 500. Comparatively, Capital Southwest has a beta of 1.19, suggesting that its stock price is 19% more volatile than the S&P 500.
Capital Southwest received 234 more outperform votes than New Mountain Finance when rated by MarketBeat users. Likewise, 62.02% of users gave Capital Southwest an outperform vote while only 27.27% of users gave New Mountain Finance an outperform vote.
Capital Southwest has a net margin of 46.81% compared to New Mountain Finance's net margin of 31.67%. Capital Southwest's return on equity of 15.88% beat New Mountain Finance's return on equity.
In the previous week, Capital Southwest had 2 more articles in the media than New Mountain Finance. MarketBeat recorded 5 mentions for Capital Southwest and 3 mentions for New Mountain Finance. New Mountain Finance's average media sentiment score of 1.72 beat Capital Southwest's score of 0.82 indicating that New Mountain Finance is being referred to more favorably in the media.
New Mountain Finance currently has a consensus price target of $12.50, indicating a potential downside of 0.40%. Capital Southwest has a consensus price target of $25.50, indicating a potential upside of 1.47%. Given Capital Southwest's stronger consensus rating and higher possible upside, analysts clearly believe Capital Southwest is more favorable than New Mountain Finance.
32.1% of New Mountain Finance shares are owned by institutional investors. Comparatively, 23.4% of Capital Southwest shares are owned by institutional investors. 10.3% of New Mountain Finance shares are owned by company insiders. Comparatively, 4.8% of Capital Southwest shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
New Mountain Finance has higher revenue and earnings than Capital Southwest. New Mountain Finance is trading at a lower price-to-earnings ratio than Capital Southwest, indicating that it is currently the more affordable of the two stocks.
Summary
Capital Southwest beats New Mountain Finance on 14 of the 20 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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