Diamond Hill Investment Group (DHIL) Competitors

Diamond Hill Investment Group (NASDAQ:DHIL) and Prospect Capital (NASDAQ:PSEC) are both small-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, profitability, media sentiment, earnings, analyst recommendations, institutional ownership, risk and valuation.

Do institutionals & insiders hold more shares of DHIL or PSEC?

65.5% of Diamond Hill Investment Group shares are held by institutional investors. Comparatively, 9.1% of Prospect Capital shares are held by institutional investors. 4.6% of Diamond Hill Investment Group shares are held by insiders. Comparatively, 28.3% of Prospect Capital shares are held by 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.

Which has more volatility and risk, DHIL or PSEC?

Diamond Hill Investment Group has a beta of 0.8, suggesting that its stock price is 20% less volatile than the S&P 500. Comparatively, Prospect Capital has a beta of 0.85, suggesting that its stock price is 15% less volatile than the S&P 500.

Is DHIL or PSEC a better dividend stock?

Diamond Hill Investment Group pays an annual dividend of $6.00 per share and has a dividend yield of 4.2%. Prospect Capital pays an annual dividend of $0.54 per share and has a dividend yield of 19.3%. Diamond Hill Investment Group pays out 34.1% of its earnings in the form of a dividend. Prospect Capital pays out -40.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Prospect Capital is clearly the better dividend stock, given its higher yield and lower payout ratio.

Does the media favor DHIL or PSEC?

In the previous week, Diamond Hill Investment Group and Diamond Hill Investment Group both had 7 articles in the media. Diamond Hill Investment Group's average media sentiment score of 1.45 beat Prospect Capital's score of 1.33 indicating that Diamond Hill Investment Group is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Diamond Hill Investment Group	5 Very Positive mention(s)	0 Positive mention(s)	0 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Prospect Capital	5 Very Positive mention(s)	0 Positive mention(s)	1 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Do analysts recommend DHIL or PSEC?

Prospect Capital has a consensus target price of $2.50, indicating a potential downside of 10.55%. Given Prospect Capital's stronger consensus rating and higher probable upside, analysts clearly believe Prospect Capital is more favorable than Diamond Hill Investment Group.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Diamond Hill Investment Group	0 Sell rating(s)	0 Hold rating(s)	0 Buy rating(s)	0 Strong Buy rating(s)	0.00
Prospect Capital	1 Sell rating(s)	0 Hold rating(s)	0 Buy rating(s)	0 Strong Buy rating(s)	1.00

Which has better valuation & earnings, DHIL or PSEC?

Diamond Hill Investment Group has higher earnings, but lower revenue than Prospect Capital. Prospect Capital is trading at a lower price-to-earnings ratio than Diamond Hill Investment Group, indicating that it is currently the more affordable of the two stocks.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Diamond Hill Investment Group	$151.10M	2.55	$43.18M	$17.58	8.03
Prospect Capital	$719.44M	1.80	-$469.92M	-$1.34	-2.09

Is DHIL or PSEC more profitable?

Diamond Hill Investment Group has a net margin of 31.71% compared to Prospect Capital's net margin of -69.68%. Diamond Hill Investment Group's return on equity of 21.38% beat Prospect Capital's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Diamond Hill Investment Group	31.71%	21.38%	14.72%
Prospect Capital	-69.68%	12.14%	5.59%

Summary

Diamond Hill Investment Group beats Prospect Capital on 9 of the 16 factors compared between the two stocks.