PennantPark Floating Rate Capital (NASDAQ:PFLT) and Dragon Victory International (NASDAQ:LYL) are both small-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, earnings, institutional ownership, risk, valuation, profitability and analyst recommendations.
Risk and Volatility
PennantPark Floating Rate Capital has a beta of 1.97, indicating that its stock price is 97% more volatile than the S&P 500. Comparatively, Dragon Victory International has a beta of 0.05, indicating that its stock price is 95% less volatile than the S&P 500.
Institutional & Insider Ownership
29.3% of PennantPark Floating Rate Capital shares are held by institutional investors. Comparatively, 0.2% of Dragon Victory International shares are held by institutional investors. 2.0% of PennantPark Floating Rate Capital shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Earnings and Valuation
This table compares PennantPark Floating Rate Capital and Dragon Victory International's gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
PennantPark Floating Rate Capital | $95.49 million | 5.14 | $18.41 million | $1.12 | 11.31 |
Dragon Victory International | $10,000.00 | 1,419.71 | $-1,420,000.00 | N/A | N/A |
PennantPark Floating Rate Capital has higher revenue and earnings than Dragon Victory International.
Profitability
This table compares PennantPark Floating Rate Capital and Dragon Victory International's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
PennantPark Floating Rate Capital | 19.28% | 9.04% | 3.59% |
Dragon Victory International | N/A | N/A | N/A |
Analyst Recommendations
This is a summary of current recommendations and price targets for PennantPark Floating Rate Capital and Dragon Victory International, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
PennantPark Floating Rate Capital | 0 | 1 | 2 | 0 | 2.67 |
Dragon Victory International | 0 | 0 | 0 | 0 | N/A |
PennantPark Floating Rate Capital presently has a consensus price target of $10.50, indicating a potential downside of 17.13%. Given PennantPark Floating Rate Capital's higher probable upside, research analysts plainly believe PennantPark Floating Rate Capital is more favorable than Dragon Victory International.
Summary
PennantPark Floating Rate Capital beats Dragon Victory International on 10 of the 11 factors compared between the two stocks.