NMFC vs. CSWC, PFLT, TSLX, GAIN, PNNT, TPVG, SCM, PSEC, GBDC, and FBNC
Should you be buying New Mountain Finance stock or one of its competitors? The main competitors of New Mountain Finance include Capital Southwest (CSWC), PennantPark Floating Rate Capital (PFLT), Sixth Street Specialty Lending (TSLX), Gladstone Investment (GAIN), PennantPark Investment (PNNT), TriplePoint Venture Growth BDC (TPVG), Stellus Capital Investment (SCM), Prospect Capital (PSEC), Golub Capital BDC (GBDC), and First Bancorp (FBNC). These companies are all part of the "finance" sector.
Capital Southwest (NASDAQ:CSWC) and New Mountain Finance (NASDAQ:NMFC) are both small-cap finance companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, institutional ownership, community ranking, valuation, analyst recommendations, media sentiment, risk, earnings and profitability.
In the previous week, Capital Southwest had 1 more articles in the media than New Mountain Finance. MarketBeat recorded 5 mentions for Capital Southwest and 4 mentions for New Mountain Finance. Capital Southwest's average media sentiment score of 1.72 beat New Mountain Finance's score of 1.16 indicating that New Mountain Finance is being referred to more favorably in the news media.
Capital Southwest has a beta of 1.19, suggesting that its stock price is 19% more volatile than the S&P 500. Comparatively, New Mountain Finance has a beta of 1.11, suggesting that its stock price is 11% more volatile than the S&P 500.
New Mountain Finance has higher revenue and earnings than Capital Southwest. New Mountain Finance is trading at a lower price-to-earnings ratio than Capital Southwest, indicating that it is currently the more affordable of the two stocks.
Capital Southwest pays an annual dividend of $2.28 per share and has a dividend yield of 9.0%. New Mountain Finance pays an annual dividend of $1.28 per share and has a dividend yield of 10.1%. Capital Southwest pays out 111.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. New Mountain Finance pays out 115.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Capital Southwest has increased its dividend for 1 consecutive years and New Mountain Finance has increased its dividend for 3 consecutive years. New Mountain Finance is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Capital Southwest has a net margin of 46.81% compared to Capital Southwest's net margin of 31.67%. New Mountain Finance's return on equity of 15.88% beat Capital Southwest's return on equity.
23.4% of Capital Southwest shares are owned by institutional investors. Comparatively, 32.1% of New Mountain Finance shares are owned by institutional investors. 4.8% of Capital Southwest shares are owned by company insiders. Comparatively, 10.3% of New Mountain Finance shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Capital Southwest received 234 more outperform votes than New Mountain Finance when rated by MarketBeat users. Likewise, 62.02% of users gave Capital Southwest an outperform vote while only 27.27% of users gave New Mountain Finance an outperform vote.
Capital Southwest presently has a consensus target price of $25.50, suggesting a potential downside of 0.82%. New Mountain Finance has a consensus target price of $12.50, suggesting a potential downside of 0.95%. Given New Mountain Finance's stronger consensus rating and higher possible upside, analysts plainly believe Capital Southwest is more favorable than New Mountain Finance.
Summary
Capital Southwest beats New Mountain Finance on 14 of the 21 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding NMFC 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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