PSEC vs. GBDC, CSWC, TSLX, NMFC, PFLT, FCPT, SFNC, FFBC, GSHD, and PRK
Should you be buying Prospect Capital stock or one of its competitors? The main competitors of Prospect Capital include Golub Capital BDC (GBDC), Capital Southwest (CSWC), Sixth Street Specialty Lending (TSLX), New Mountain Finance (NMFC), PennantPark Floating Rate Capital (PFLT), Four Corners Property Trust (FCPT), Simmons First National (SFNC), First Financial Bancorp. (FFBC), Goosehead Insurance (GSHD), and Park National (PRK). These companies are all part of the "finance" sector.
Golub Capital BDC (NASDAQ:GBDC) and Prospect Capital (NASDAQ:PSEC) are both mid-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, media sentiment, profitability, analyst recommendations, valuation, risk, community ranking, dividends and institutional ownership.
42.4% of Golub Capital BDC shares are held by institutional investors. Comparatively, 9.1% of Prospect Capital shares are held by institutional investors. 2.7% of Golub Capital BDC shares are held by company insiders. Comparatively, 26.7% of Prospect Capital shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Golub Capital BDC presently has a consensus target price of $16.40, indicating a potential upside of 0.06%. Prospect Capital has a consensus target price of $5.00, indicating a potential downside of 11.66%. Given Prospect Capital's stronger consensus rating and higher possible upside, equities analysts plainly believe Golub Capital BDC is more favorable than Prospect Capital.
Golub Capital BDC has a beta of 0.55, indicating that its share price is 45% less volatile than the S&P 500. Comparatively, Prospect Capital has a beta of 1, indicating that its share price has a similar volatility profile to the S&P 500.
In the previous week, Prospect Capital had 9 more articles in the media than Golub Capital BDC. MarketBeat recorded 15 mentions for Prospect Capital and 6 mentions for Golub Capital BDC. Prospect Capital's average media sentiment score of 0.77 beat Golub Capital BDC's score of 0.66 indicating that Golub Capital BDC is being referred to more favorably in the media.
Prospect Capital received 19 more outperform votes than Golub Capital BDC when rated by MarketBeat users. However, 56.50% of users gave Golub Capital BDC an outperform vote while only 52.21% of users gave Prospect Capital an outperform vote.
Golub Capital BDC pays an annual dividend of $1.56 per share and has a dividend yield of 9.5%. Prospect Capital pays an annual dividend of $0.72 per share and has a dividend yield of 12.7%. Golub Capital BDC pays out 76.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Prospect Capital pays out 211.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Golub Capital BDC has increased its dividend for 4 consecutive years.
Golub Capital BDC has higher earnings, but lower revenue than Prospect Capital. Golub Capital BDC is trading at a lower price-to-earnings ratio than Prospect Capital, indicating that it is currently the more affordable of the two stocks.
Golub Capital BDC has a net margin of 53.05% compared to Golub Capital BDC's net margin of 25.13%. Golub Capital BDC's return on equity of 13.32% beat Prospect Capital's return on equity.
Summary
Golub Capital BDC beats Prospect Capital on 12 of the 21 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding PSEC 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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