SCM vs. PNNT, GAIN, OFS, CSWC, TPVG, PTMN, PFLT, NMFC, SOR, and HQL
Should you be buying Stellus Capital Investment stock or one of its competitors? The main competitors of Stellus Capital Investment include PennantPark Investment (PNNT), Gladstone Investment (GAIN), OFS Capital (OFS), Capital Southwest (CSWC), TriplePoint Venture Growth BDC (TPVG), Portman Ridge Finance (PTMN), PennantPark Floating Rate Capital (PFLT), New Mountain Finance (NMFC), Source Capital (SOR), and Abrdn Life Sciences Investors (HQL). These companies are all part of the "finance" sector.
Stellus Capital Investment (NYSE:SCM) and PennantPark Investment (NASDAQ:PNNT) are both small-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, community ranking, media sentiment, valuation, dividends, profitability, earnings, analyst recommendations and risk.
13.2% of Stellus Capital Investment shares are held by institutional investors. Comparatively, 26.6% of PennantPark Investment shares are held by institutional investors. 5.4% of Stellus Capital Investment shares are held by company insiders. Comparatively, 3.0% of PennantPark Investment shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Stellus Capital Investment has higher earnings, but lower revenue than PennantPark Investment. PennantPark Investment is trading at a lower price-to-earnings ratio than Stellus Capital Investment, indicating that it is currently the more affordable of the two stocks.
PennantPark Investment received 60 more outperform votes than Stellus Capital Investment when rated by MarketBeat users. However, 59.26% of users gave Stellus Capital Investment an outperform vote while only 58.15% of users gave PennantPark Investment an outperform vote.
In the previous week, Stellus Capital Investment had 2 more articles in the media than PennantPark Investment. MarketBeat recorded 3 mentions for Stellus Capital Investment and 1 mentions for PennantPark Investment. Stellus Capital Investment's average media sentiment score of 1.51 beat PennantPark Investment's score of 0.00 indicating that Stellus Capital Investment is being referred to more favorably in the media.
Stellus Capital Investment has a beta of 1.13, suggesting that its stock price is 13% more volatile than the S&P 500. Comparatively, PennantPark Investment has a beta of 1.49, suggesting that its stock price is 49% more volatile than the S&P 500.
Stellus Capital Investment currently has a consensus target price of $13.25, suggesting a potential downside of 6.62%. PennantPark Investment has a consensus target price of $6.94, suggesting a potential downside of 1.53%. Given PennantPark Investment's stronger consensus rating and higher probable upside, analysts clearly believe PennantPark Investment is more favorable than Stellus Capital Investment.
Stellus Capital Investment pays an annual dividend of $1.60 per share and has a dividend yield of 11.3%. PennantPark Investment pays an annual dividend of $0.84 per share and has a dividend yield of 11.9%. Stellus Capital Investment pays out 205.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. PennantPark Investment pays out 113.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. PennantPark Investment is clearly the better dividend stock, given its higher yield and lower payout ratio.
PennantPark Investment has a net margin of 32.55% compared to Stellus Capital Investment's net margin of 16.56%. PennantPark Investment's return on equity of 14.17% beat Stellus Capital Investment's return on equity.
Summary
PennantPark Investment beats Stellus Capital Investment on 12 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding SCM 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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