SCM vs. PNNT, GAIN, CSWC, TPVG, PTMN, PFLT, NMFC, FRGE, PPT, and SRG
Should you be buying Stellus Capital Investment stock or one of its competitors? The main competitors of Stellus Capital Investment include PennantPark Investment (PNNT), Gladstone Investment (GAIN), Capital Southwest (CSWC), TriplePoint Venture Growth BDC (TPVG), Portman Ridge Finance (PTMN), PennantPark Floating Rate Capital (PFLT), New Mountain Finance (NMFC), Forge Global (FRGE), Putnam Premier Income Trust (PPT), and Seritage Growth Properties (SRG). These companies are all part of the "finance" sector.
PennantPark Investment (NASDAQ:PNNT) and Stellus Capital Investment (NYSE:SCM) are both small-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, risk, valuation, dividends, media sentiment, community ranking, profitability, earnings and institutional ownership.
PennantPark Investment currently has a consensus price target of $6.94, indicating a potential downside of 6.00%. Stellus Capital Investment has a consensus price target of $13.63, indicating a potential downside of 1.98%. Given PennantPark Investment's higher possible upside, analysts clearly believe Stellus Capital Investment is more favorable than PennantPark Investment.
In the previous week, Stellus Capital Investment had 3 more articles in the media than PennantPark Investment. MarketBeat recorded 3 mentions for Stellus Capital Investment and 0 mentions for PennantPark Investment. Stellus Capital Investment's average media sentiment score of 0.00 beat PennantPark Investment's score of -0.11 indicating that PennantPark Investment is being referred to more favorably in the media.
PennantPark Investment has a net margin of 40.14% compared to PennantPark Investment's net margin of 24.08%. PennantPark Investment's return on equity of 14.08% beat Stellus Capital Investment's return on equity.
PennantPark Investment has a beta of 1.49, suggesting that its stock price is 49% more volatile than the S&P 500. Comparatively, Stellus Capital Investment has a beta of 1.14, suggesting that its stock price is 14% more volatile than the S&P 500.
PennantPark Investment received 60 more outperform votes than Stellus Capital Investment when rated by MarketBeat users. However, 59.14% of users gave Stellus Capital Investment an outperform vote while only 57.96% of users gave PennantPark Investment an outperform vote.
Stellus Capital Investment has lower revenue, but higher earnings than PennantPark Investment. PennantPark Investment is trading at a lower price-to-earnings ratio than Stellus Capital Investment, indicating that it is currently the more affordable of the two stocks.
PennantPark Investment pays an annual dividend of $0.84 per share and has a dividend yield of 11.4%. Stellus Capital Investment pays an annual dividend of $1.60 per share and has a dividend yield of 11.5%. PennantPark Investment pays out 91.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Stellus Capital Investment pays out 148.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Stellus Capital Investment has raised its dividend for 1 consecutive years. Stellus Capital Investment is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
26.6% of PennantPark Investment shares are held by institutional investors. Comparatively, 13.2% of Stellus Capital Investment shares are held by institutional investors. 3.0% of PennantPark Investment shares are held by insiders. Comparatively, 4.7% of Stellus Capital Investment shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Summary
Stellus Capital Investment beats PennantPark Investment on 10 of the 19 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding SCM and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
Skip ChartThis chart shows the average media sentiment of NYSE 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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