TSLX vs. PSEC, NMFC, GBDC, CSWC, PFLT, GAIN, ITCLY, TOWN, AGM, and OBDE
Should you be buying Sixth Street Specialty Lending stock or one of its competitors? The main competitors of Sixth Street Specialty Lending include Prospect Capital (PSEC), New Mountain Finance (NMFC), Golub Capital BDC (GBDC), Capital Southwest (CSWC), PennantPark Floating Rate Capital (PFLT), Gladstone Investment (GAIN), Banco Itau Chile Spon (ITCLY), TowneBank (TOWN), Federal Agricultural Mortgage (AGM), and Blue Owl Capital Co. III (OBDE). These companies are all part of the "finance" sector.
Prospect Capital (NASDAQ:PSEC) and Sixth Street Specialty Lending (NYSE:TSLX) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, media sentiment, valuation, community ranking, earnings, institutional ownership, analyst recommendations, risk and profitability.
9.1% of Prospect Capital shares are owned by institutional investors. Comparatively, 70.3% of Sixth Street Specialty Lending shares are owned by institutional investors. 26.7% of Prospect Capital shares are owned by company insiders. Comparatively, 3.3% of Sixth Street Specialty Lending shares are owned 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.
Sixth Street Specialty Lending has a net margin of 47.16% compared to Sixth Street Specialty Lending's net margin of 25.13%. Prospect Capital's return on equity of 13.74% beat Sixth Street Specialty Lending's return on equity.
Sixth Street Specialty Lending has lower revenue, but higher earnings than Prospect Capital. Sixth Street Specialty Lending is trading at a lower price-to-earnings ratio than Prospect Capital, indicating that it is currently the more affordable of the two stocks.
Prospect Capital has a beta of 1, suggesting that its share price has a similar volatility profile to the S&P 500.Comparatively, Sixth Street Specialty Lending has a beta of 1.03, suggesting that its share price is 3% more volatile than the S&P 500.
In the previous week, Prospect Capital had 5 more articles in the media than Sixth Street Specialty Lending. MarketBeat recorded 6 mentions for Prospect Capital and 1 mentions for Sixth Street Specialty Lending. Prospect Capital's average media sentiment score of 1.16 beat Sixth Street Specialty Lending's score of 0.39 indicating that Sixth Street Specialty Lending is being referred to more favorably in the news media.
Prospect Capital pays an annual dividend of $0.72 per share and has a dividend yield of 12.8%. Sixth Street Specialty Lending pays an annual dividend of $1.84 per share and has a dividend yield of 8.6%. 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. Sixth Street Specialty Lending pays out 74.2% of its earnings in the form of a dividend. Sixth Street Specialty Lending has raised its dividend for 1 consecutive years.
Prospect Capital currently has a consensus price target of $5.00, suggesting a potential downside of 11.35%. Sixth Street Specialty Lending has a consensus price target of $22.67, suggesting a potential upside of 5.97%. Given Prospect Capital's stronger consensus rating and higher possible upside, analysts clearly believe Sixth Street Specialty Lending is more favorable than Prospect Capital.
Sixth Street Specialty Lending received 61 more outperform votes than Prospect Capital when rated by MarketBeat users. Likewise, 66.32% of users gave Sixth Street Specialty Lending an outperform vote while only 52.21% of users gave Prospect Capital an outperform vote.
Summary
Sixth Street Specialty Lending beats Prospect Capital on 15 of the 21 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding TSLX 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 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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