Gladstone Investment (GAIN) Competitors

Prospect Capital (NASDAQ:PSEC) and Gladstone Investment (NASDAQ:GAIN) are both small-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, institutional ownership, media sentiment, community ranking, earnings, dividends, analyst recommendations, valuation and profitability.

Is PSEC or GAIN a better dividend stock?

Prospect Capital pays an annual dividend of $0.54 per share and has a dividend yield of 15.0%. Gladstone Investment pays an annual dividend of $0.96 per share and has a dividend yield of 6.9%. Prospect Capital pays out -270.0% of its earnings in the form of a dividend. Gladstone Investment pays out 50.0% 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.

Do insiders and institutionals have more ownership in PSEC or GAIN?

9.1% of Prospect Capital shares are held by institutional investors. Comparatively, 11.9% of Gladstone Investment shares are held by institutional investors. 28.3% of Prospect Capital shares are held by company insiders. Comparatively, 2.5% of Gladstone Investment shares are held by company 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.

Which has preferable valuation & earnings, PSEC or GAIN?

Prospect Capital has higher revenue and earnings than Gladstone Investment. Prospect Capital is trading at a lower price-to-earnings ratio than Gladstone Investment, 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	$101.04M	15.88	$262.83M	-$0.20	-18.00
Gladstone Investment	$66.70M	7.73	$85.31M	$1.92	7.29

Do analysts prefer PSEC or GAIN?

Prospect Capital currently has a consensus target price of $3.50, suggesting a potential downside of 2.78%. Gladstone Investment has a consensus target price of $13.75, suggesting a potential downside of 1.72%. Given Gladstone Investment's stronger consensus rating and higher probable upside, analysts clearly believe Gladstone Investment is more favorable than Prospect Capital.

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
Gladstone Investment	0 Sell rating(s)	2 Hold rating(s)	0 Buy rating(s)	0 Strong Buy rating(s)	2.00

Is PSEC or GAIN more profitable?

Gladstone Investment has a net margin of 78.02% compared to Prospect Capital's net margin of 1.18%. Prospect Capital's return on equity of 12.31% beat Gladstone Investment's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Prospect Capital	1.18%	12.31%	5.79%
Gladstone Investment	78.02%	7.17%	3.61%

Does the MarketBeat Community prefer PSEC or GAIN?

Gladstone Investment received 48 more outperform votes than Prospect Capital when rated by MarketBeat users. Likewise, 60.86% of users gave Gladstone Investment an outperform vote while only 51.53% of users gave Prospect Capital an outperform vote.

Company	Underperform	Outperform
Prospect Capital	Outperform Votes 319 51.53%	Underperform Votes 300 48.47%
Gladstone Investment	Outperform Votes 367 60.86%	Underperform Votes 236 39.14%

Does the media prefer PSEC or GAIN?

In the previous week, Prospect Capital had 6 more articles in the media than Gladstone Investment. MarketBeat recorded 7 mentions for Prospect Capital and 1 mentions for Gladstone Investment. Gladstone Investment's average media sentiment score of 0.98 beat Prospect Capital's score of 0.96 indicating that Gladstone Investment is being referred to more favorably in the news media.

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

Which has more risk & volatility, PSEC or GAIN?

Prospect Capital has a beta of 0.85, suggesting that its stock price is 15% less volatile than the S&P 500. Comparatively, Gladstone Investment has a beta of 1.12, suggesting that its stock price is 12% more volatile than the S&P 500.

Summary

Gladstone Investment beats Prospect Capital on 10 of the 19 factors compared between the two stocks.