Gladstone Capital (GLAD) Competitors

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

Does the MarketBeat Community believe in PSEC or GLAD?

Prospect Capital received 51 more outperform votes than Gladstone Capital when rated by MarketBeat users. However, 54.36% of users gave Gladstone Capital an outperform vote while only 51.45% of users gave Prospect Capital an outperform vote.

Company	Underperform	Outperform
Prospect Capital	Outperform Votes 319 51.45%	Underperform Votes 301 48.55%
Gladstone Capital	Outperform Votes 268 54.36%	Underperform Votes 225 45.64%

Which has better earnings and valuation, PSEC or GLAD?

Prospect Capital has higher earnings, but lower revenue than Gladstone Capital. Prospect Capital is trading at a lower price-to-earnings ratio than Gladstone Capital, 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	-$182.78M	-8.27	$262.83M	-$0.86	-3.94
Gladstone Capital	$88.83M	6.58	$94.72M	$3.94	6.64

Is PSEC or GLAD a better dividend stock?

Prospect Capital pays an annual dividend of $0.54 per share and has a dividend yield of 15.9%. Gladstone Capital pays an annual dividend of $1.98 per share and has a dividend yield of 7.6%. Prospect Capital pays out -62.8% of its earnings in the form of a dividend. Gladstone Capital pays out 50.3% 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. Gladstone Capital has increased its dividend for 4 consecutive years. Prospect Capital is clearly the better dividend stock, given its higher yield and lower payout ratio.

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

9.1% of Prospect Capital shares are owned by institutional investors. Comparatively, 10.7% of Gladstone Capital shares are owned by institutional investors. 28.3% of Prospect Capital shares are owned by insiders. Comparatively, 4.0% of Gladstone Capital shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Which has more volatility and risk, PSEC or GLAD?

Prospect Capital has a beta of 0.93, indicating that its share price is 7% less volatile than the S&P 500. Comparatively, Gladstone Capital has a beta of 1, indicating that its share price has a similar volatility profile to the S&P 500.

Do analysts recommend PSEC or GLAD?

Prospect Capital presently has a consensus price target of $3.00, suggesting a potential downside of 11.50%. Gladstone Capital has a consensus price target of $23.00, suggesting a potential downside of 12.15%. Given Prospect Capital's higher possible upside, research analysts clearly believe Prospect Capital is more favorable than Gladstone 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 Capital	0 Sell rating(s)	1 Hold rating(s)	0 Buy rating(s)	0 Strong Buy rating(s)	2.00

Is PSEC or GLAD more profitable?

Gladstone Capital has a net margin of 106.59% compared to Prospect Capital's net margin of 1.18%. Prospect Capital's return on equity of 12.31% beat Gladstone Capital's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Prospect Capital	1.18%	12.31%	5.79%
Gladstone Capital	106.59%	10.00%	5.66%

Does the media favor PSEC or GLAD?

In the previous week, Prospect Capital had 3 more articles in the media than Gladstone Capital. MarketBeat recorded 5 mentions for Prospect Capital and 2 mentions for Gladstone Capital. Prospect Capital's average media sentiment score of 0.57 beat Gladstone Capital's score of 0.40 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	2 Very Positive mention(s)	0 Positive mention(s)	3 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Gladstone Capital	0 Very Positive mention(s)	0 Positive mention(s)	1 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Neutral

Summary

Prospect Capital and Gladstone Capital tied by winning 10 of the 20 factors compared between the two stocks.