Prospect Capital (PSEC) Competitors

Prospect Capital (NASDAQ:PSEC) and Invesco (NYSE:IVZ) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their valuation, dividends, risk, institutional ownership, analyst recommendations, media sentiment, community ranking, earnings and profitability.

Does the media favor PSEC or IVZ?

In the previous week, Prospect Capital had 2 more articles in the media than Invesco. MarketBeat recorded 14 mentions for Prospect Capital and 12 mentions for Invesco. Prospect Capital's average media sentiment score of 1.52 beat Invesco's score of 1.22 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	9 Very Positive mention(s)	0 Positive mention(s)	3 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Very Positive
Invesco	9 Very Positive mention(s)	1 Positive mention(s)	2 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Is PSEC or IVZ a better dividend stock?

Prospect Capital pays an annual dividend of $0.54 per share and has a dividend yield of 13.1%. Invesco pays an annual dividend of $0.82 per share and has a dividend yield of 5.4%. Prospect Capital pays out -270.0% of its earnings in the form of a dividend. Invesco pays out 69.5% 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.

Is PSEC or IVZ more profitable?

Invesco has a net margin of 12.77% compared to Prospect Capital's net margin of 1.18%. Prospect Capital's return on equity of 12.31% beat Invesco's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Prospect Capital	1.18%	12.31%	5.79%
Invesco	12.77%	8.18%	3.68%

Which has preferable valuation and earnings, PSEC or IVZ?

Invesco has higher revenue and earnings than Prospect Capital. Prospect Capital is trading at a lower price-to-earnings ratio than Invesco, 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	18.13	$262.83M	-$0.20	-20.55
Invesco	$6.07B	1.12	$774.80M	$1.18	12.88

Does the MarketBeat Community favor PSEC or IVZ?

Invesco received 515 more outperform votes than Prospect Capital when rated by MarketBeat users. Likewise, 63.81% of users gave Invesco an outperform vote while only 51.79% of users gave Prospect Capital an outperform vote.

Company	Underperform	Outperform
Prospect Capital	Outperform Votes 319 51.79%	Underperform Votes 297 48.21%
Invesco	Outperform Votes 834 63.81%	Underperform Votes 473 36.19%

Do analysts rate PSEC or IVZ?

Prospect Capital currently has a consensus target price of $4.50, indicating a potential upside of 9.49%. Invesco has a consensus target price of $19.94, indicating a potential upside of 31.24%. Given Invesco's stronger consensus rating and higher probable upside, analysts clearly believe Invesco is more favorable than Prospect 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
Invesco	1 Sell rating(s)	10 Hold rating(s)	2 Buy rating(s)	0 Strong Buy rating(s)	2.08

Which has more volatility & risk, PSEC or IVZ?

Prospect Capital has a beta of 0.94, indicating that its share price is 6% less volatile than the S&P 500. Comparatively, Invesco has a beta of 1.43, indicating that its share price is 43% more volatile than the S&P 500.

Do insiders and institutionals believe in PSEC or IVZ?

9.1% of Prospect Capital shares are owned by institutional investors. Comparatively, 66.1% of Invesco shares are owned by institutional investors. 28.3% of Prospect Capital shares are owned by insiders. Comparatively, 2.0% of Invesco shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Invesco beats Prospect Capital on 12 of the 20 factors compared between the two stocks.