Diamond Hill Investment Group (DHIL) Competitors

Prospect Capital (NASDAQ:PSEC) and Diamond Hill Investment Group (NASDAQ:DHIL) 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, valuation, earnings, risk, dividends, analyst recommendations, profitability and media sentiment.

Does the media favor PSEC or DHIL?

In the previous week, Prospect Capital had 3 more articles in the media than Diamond Hill Investment Group. MarketBeat recorded 5 mentions for Prospect Capital and 2 mentions for Diamond Hill Investment Group. Prospect Capital's average media sentiment score of 0.86 beat Diamond Hill Investment Group's score of 0.59 indicating that Prospect Capital is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Prospect Capital	3 Very Positive mention(s)	0 Positive mention(s)	2 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Diamond Hill Investment Group	1 Very Positive mention(s)	1 Positive mention(s)	0 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Is PSEC or DHIL a better dividend stock?

Prospect Capital pays an annual dividend of $0.54 per share and has a dividend yield of 16.3%. Diamond Hill Investment Group pays an annual dividend of $6.00 per share and has a dividend yield of 3.9%. Prospect Capital pays out -62.8% of its earnings in the form of a dividend. Diamond Hill Investment Group pays out 40.6% 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.

Is PSEC or DHIL more profitable?

Diamond Hill Investment Group has a net margin of 26.68% compared to Prospect Capital's net margin of -36.07%. Diamond Hill Investment Group's return on equity of 21.99% beat Prospect Capital's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Prospect Capital	-36.07%	12.43%	5.83%
Diamond Hill Investment Group	26.68%	21.99%	15.57%

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

9.1% of Prospect Capital shares are owned by institutional investors. Comparatively, 65.5% of Diamond Hill Investment Group shares are owned by institutional investors. 28.3% of Prospect Capital shares are owned by insiders. Comparatively, 4.6% of Diamond Hill Investment Group shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Which has stronger earnings and valuation, PSEC or DHIL?

Prospect Capital has higher revenue and earnings than Diamond Hill Investment Group. 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
Prospect Capital	$861.66M	1.71	$262.83M	-$0.86	-3.85
Diamond Hill Investment Group	$151.10M	2.80	$43.18M	$14.78	10.49

Which has more volatility and risk, PSEC or DHIL?

Prospect Capital has a beta of 0.83, indicating that its stock price is 17% less volatile than the S&P 500. Comparatively, Diamond Hill Investment Group has a beta of 0.8, indicating that its stock price is 20% less volatile than the S&P 500.

Do analysts rate PSEC or DHIL?

Prospect Capital presently has a consensus target price of $3.00, suggesting a potential downside of 9.50%. Given Prospect Capital's stronger consensus rating and higher possible upside, research analysts plainly believe Prospect Capital is more favorable than Diamond Hill Investment Group.

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

Summary

Prospect Capital beats Diamond Hill Investment Group on 10 of the 17 factors compared between the two stocks.