Gladstone Capital (GLAD) Competitors

Prospect Capital (NASDAQ:PSEC) and Gladstone Capital (NASDAQ:GLAD) are both small-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their community ranking, analyst recommendations, risk, institutional ownership, profitability, earnings, dividends, media sentiment and valuation.

Is PSEC or GLAD a better dividend stock?

Prospect Capital pays an annual dividend of $0.54 per share and has a dividend yield of 14.6%. Gladstone Capital pays an annual dividend of $1.98 per share and has a dividend yield of 7.8%. Prospect Capital pays out -270.0% of its earnings in the form of a dividend. Gladstone Capital pays out 48.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Prospect Capital is clearly the better dividend stock, given its higher yield and lower payout ratio.

Do institutionals & insiders have more ownership in PSEC or GLAD?

9.1% of Prospect Capital shares are held by institutional investors. Comparatively, 10.7% of Gladstone Capital shares are held by institutional investors. 28.3% of Prospect Capital shares are held by insiders. Comparatively, 4.0% of Gladstone Capital shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Does the media refer more to PSEC or GLAD?

In the previous week, Prospect Capital had 2 more articles in the media than Gladstone Capital. MarketBeat recorded 6 mentions for Prospect Capital and 4 mentions for Gladstone Capital. Prospect Capital's average media sentiment score of 1.51 beat Gladstone Capital's score of 1.12 indicating that Prospect Capital is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Prospect Capital	5 Very Positive mention(s)	0 Positive mention(s)	0 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Very Positive
Gladstone Capital	1 Very Positive mention(s)	1 Positive mention(s)	0 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Do analysts recommend PSEC or GLAD?

Prospect Capital currently has a consensus price target of $4.50, suggesting a potential upside of 21.95%. Gladstone Capital has a consensus price target of $23.00, suggesting a potential downside of 9.52%. Given Prospect Capital's higher possible upside, research analysts clearly believe Prospect Capital is more favorable than Gladstone Capital.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Prospect Capital	1 Sell rating(s)	0 Hold rating(s)	0 Buy rating(s)	0 Strong Buy rating(s)	1.00
Gladstone Capital	0 Sell rating(s)	1 Hold rating(s)	0 Buy rating(s)	0 Strong Buy rating(s)	2.00

Which has more volatility and risk, PSEC or GLAD?

Prospect Capital has a beta of 0.85, meaning that its share price is 15% less volatile than the S&P 500. Comparatively, Gladstone Capital has a beta of 1.05, meaning that its share price is 5% more volatile than the S&P 500.

Is PSEC or GLAD more profitable?

Gladstone Capital has a net margin of 106.59% compared to Prospect Capital's net margin of 1.18%. Prospect Capital's return on equity of 12.31% beat Gladstone Capital's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Prospect Capital	1.18%	12.31%	5.79%
Gladstone Capital	106.59%	10.00%	5.66%

Which has better earnings & valuation, PSEC or GLAD?

Prospect Capital has higher earnings, but lower revenue than Gladstone Capital. Prospect Capital is trading at a lower price-to-earnings ratio than Gladstone Capital, indicating that it is currently the more affordable of the two stocks.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Prospect Capital	$101.04M	16.28	$262.83M	-$0.20	-18.45
Gladstone Capital	$105.41M	5.39	$94.72M	$4.09	6.22

Does the MarketBeat Community prefer PSEC or GLAD?

Prospect Capital received 51 more outperform votes than Gladstone Capital when rated by MarketBeat users. However, 54.36% of users gave Gladstone Capital an outperform vote while only 51.62% of users gave Prospect Capital an outperform vote.

Company	Underperform	Outperform
Prospect Capital	Outperform Votes 319 51.62%	Underperform Votes 299 48.38%
Gladstone Capital	Outperform Votes 268 54.36%	Underperform Votes 225 45.64%

Summary

Prospect Capital beats Gladstone Capital on 11 of the 19 factors compared between the two stocks.