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.
Sixth Street Specialty Lending (NYSE:TSLX) and Prospect Capital (NASDAQ:PSEC) are both mid-cap finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, profitability, risk, earnings, media sentiment, valuation, institutional ownership and community ranking.
Sixth Street Specialty Lending currently has a consensus target price of $22.67, suggesting a potential upside of 4.60%. Prospect Capital has a consensus target price of $5.00, suggesting a potential downside of 12.43%. Given Sixth Street Specialty Lending's stronger consensus rating and higher possible upside, equities research analysts clearly believe Sixth Street Specialty Lending is more favorable than Prospect Capital.
Sixth Street Specialty Lending has a beta of 1.03, meaning that its share price is 3% more volatile than the S&P 500. Comparatively, Prospect Capital has a beta of 1, meaning that its share price has a similar volatility profile to the S&P 500.
In the previous week, Sixth Street Specialty Lending had 3 more articles in the media than Prospect Capital. MarketBeat recorded 8 mentions for Sixth Street Specialty Lending and 5 mentions for Prospect Capital. Prospect Capital's average media sentiment score of 0.42 beat Sixth Street Specialty Lending's score of -0.71 indicating that Prospect Capital is being referred to more favorably in the news media.
Sixth Street Specialty Lending has higher earnings, but lower revenue 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.
70.3% of Sixth Street Specialty Lending shares are held by institutional investors. Comparatively, 9.1% of Prospect Capital shares are held by institutional investors. 3.3% of Sixth Street Specialty Lending 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 large money managers, hedge funds and endowments believe a company is poised for long-term growth.
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.
Sixth Street Specialty Lending pays an annual dividend of $1.84 per share and has a dividend yield of 8.4%. Prospect Capital pays an annual dividend of $0.72 per share and has a dividend yield of 12.7%. Sixth Street Specialty Lending pays out 74.2% of its earnings in the form of a dividend. 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 has a net margin of 47.16% compared to Prospect Capital's net margin of 25.13%. Sixth Street Specialty Lending's return on equity of 13.74% beat Prospect Capital's return on equity.
Summary
Sixth Street Specialty Lending beats Prospect Capital on 14 of the 20 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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