PSEC vs. GBDC, CSWC, TSLX, NMFC, PFLT, DEI, GSHD, LGIH, HPH, and PJT
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), Douglas Emmett (DEI), Goosehead Insurance (GSHD), LGI Homes (LGIH), Highest Performances (HPH), and PJT Partners (PJT). 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 better stock? We will compare the two businesses based on the strength of their valuation, earnings, community ranking, media sentiment, profitability, analyst recommendations, risk, institutional ownership and dividends.
Prospect Capital received 19 more outperform votes than Golub Capital BDC when rated by MarketBeat users. However, 56.60% of users gave Golub Capital BDC an outperform vote while only 52.38% 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 9.0%. Prospect Capital pays an annual dividend of $0.72 per share and has a dividend yield of 13.7%. Golub Capital BDC pays out 85.7% 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 -360.0% of its earnings in the form of a dividend. Golub Capital BDC has increased its dividend for 4 consecutive years. Prospect Capital is clearly the better dividend stock, given its higher yield and lower payout ratio.
Golub Capital BDC has a beta of 0.57, meaning that its share price is 43% less 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.
42.4% of Golub Capital BDC shares are owned by institutional investors. Comparatively, 9.1% of Prospect Capital shares are owned by institutional investors. 2.7% of Golub Capital BDC shares are owned by insiders. Comparatively, 26.7% of Prospect Capital shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Golub Capital BDC has a net margin of 48.94% compared to Golub Capital BDC's net margin of -1.47%. Golub Capital BDC's return on equity of 13.48% beat Prospect Capital's return on equity.
Golub Capital BDC has higher earnings, but lower revenue than Prospect Capital. Prospect Capital is trading at a lower price-to-earnings ratio than Golub Capital BDC, indicating that it is currently the more affordable of the two stocks.
Golub Capital BDC presently has a consensus target price of $16.40, suggesting a potential downside of 5.58%. Prospect Capital has a consensus target price of $5.75, suggesting a potential upside of 9.52%. Given Golub Capital BDC's higher possible upside, analysts clearly believe Prospect Capital is more favorable than Golub Capital BDC.
In the previous week, Golub Capital BDC had 14 more articles in the media than Prospect Capital. MarketBeat recorded 15 mentions for Golub Capital BDC and 1 mentions for Prospect Capital. Prospect Capital's average media sentiment score of 0.50 beat Golub Capital BDC's score of 0.00 indicating that Golub Capital BDC is being referred to more favorably in the media.
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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