PennantPark Floating Rate Capital (PFLT) Competitors

PennantPark Floating Rate Capital (NASDAQ:PFLT) and Sixth Street Specialty Lending (NYSE:TSLX) are both small-cap finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, community ranking, valuation, risk, profitability, media sentiment, analyst recommendations, earnings and institutional ownership.

Is PFLT or TSLX a better dividend stock?

PennantPark Floating Rate Capital pays an annual dividend of $1.23 per share and has a dividend yield of 11.4%. Sixth Street Specialty Lending pays an annual dividend of $1.84 per share and has a dividend yield of 8.9%. PennantPark Floating Rate Capital pays out 86.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Sixth Street Specialty Lending pays out 89.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. PennantPark Floating Rate Capital is clearly the better dividend stock, given its higher yield and lower payout ratio.

Which has preferable earnings and valuation, PFLT or TSLX?

Sixth Street Specialty Lending has higher revenue and earnings than PennantPark Floating Rate Capital. PennantPark Floating Rate Capital is trading at a lower price-to-earnings ratio than Sixth Street Specialty Lending, 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
PennantPark Floating Rate Capital	$186.35M	4.83	$91.84M	$1.43	7.56
Sixth Street Specialty Lending	$253.42M	7.63	$196.40M	$2.06	10.05

Do institutionals & insiders hold more shares of PFLT or TSLX?

19.8% of PennantPark Floating Rate Capital shares are held by institutional investors. Comparatively, 70.3% of Sixth Street Specialty Lending shares are held by institutional investors. 1.0% of PennantPark Floating Rate Capital shares are held by company insiders. Comparatively, 3.3% of Sixth Street Specialty Lending shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Is PFLT or TSLX more profitable?

PennantPark Floating Rate Capital has a net margin of 49.28% compared to Sixth Street Specialty Lending's net margin of 39.05%. Sixth Street Specialty Lending's return on equity of 13.55% beat PennantPark Floating Rate Capital's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
PennantPark Floating Rate Capital	49.28%	10.88%	4.89%
Sixth Street Specialty Lending	39.05%	13.55%	6.20%

Do analysts recommend PFLT or TSLX?

PennantPark Floating Rate Capital presently has a consensus target price of $12.00, suggesting a potential upside of 11.01%. Sixth Street Specialty Lending has a consensus target price of $22.00, suggesting a potential upside of 6.23%. Given PennantPark Floating Rate Capital's higher possible upside, equities analysts plainly believe PennantPark Floating Rate Capital is more favorable than Sixth Street Specialty Lending.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PennantPark Floating Rate Capital	0 Sell rating(s)	0 Hold rating(s)	2 Buy rating(s)	0 Strong Buy rating(s)	3.00
Sixth Street Specialty Lending	0 Sell rating(s)	0 Hold rating(s)	6 Buy rating(s)	0 Strong Buy rating(s)	3.00

Does the MarketBeat Community favor PFLT or TSLX?

Sixth Street Specialty Lending received 132 more outperform votes than PennantPark Floating Rate Capital when rated by MarketBeat users. Likewise, 66.61% of users gave Sixth Street Specialty Lending an outperform vote while only 50.40% of users gave PennantPark Floating Rate Capital an outperform vote.

Company	Underperform	Outperform
PennantPark Floating Rate Capital	Outperform Votes 253 50.40%	Underperform Votes 249 49.60%
Sixth Street Specialty Lending	Outperform Votes 385 66.61%	Underperform Votes 193 33.39%

Which has more risk & volatility, PFLT or TSLX?

PennantPark Floating Rate Capital has a beta of 1.65, indicating that its stock price is 65% more volatile than the S&P 500. Comparatively, Sixth Street Specialty Lending has a beta of 1.06, indicating that its stock price is 6% more volatile than the S&P 500.

Does the media refer more to PFLT or TSLX?

In the previous week, Sixth Street Specialty Lending had 3 more articles in the media than PennantPark Floating Rate Capital. MarketBeat recorded 8 mentions for Sixth Street Specialty Lending and 5 mentions for PennantPark Floating Rate Capital. PennantPark Floating Rate Capital's average media sentiment score of 0.75 beat Sixth Street Specialty Lending's score of 0.67 indicating that PennantPark Floating Rate Capital is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
PennantPark Floating Rate Capital	2 Very Positive mention(s)	0 Positive mention(s)	3 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Sixth Street Specialty Lending	2 Very Positive mention(s)	3 Positive mention(s)	3 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Summary

Sixth Street Specialty Lending beats PennantPark Floating Rate Capital on 13 of the 19 factors compared between the two stocks.