PennantPark Investment (PNNT) Competitors

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

Is PSEC or PNNT a better dividend stock?

Prospect Capital pays an annual dividend of $0.54 per share and has a dividend yield of 16.0%. PennantPark Investment pays an annual dividend of $0.96 per share and has a dividend yield of 14.0%. Prospect Capital pays out -62.8% of its earnings in the form of a dividend. PennantPark Investment pays out 640.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. PennantPark Investment has increased its dividend for 1 consecutive years. Prospect Capital is clearly the better dividend stock, given its higher yield and lower payout ratio.

Does the media refer more to PSEC or PNNT?

In the previous week, Prospect Capital had 9 more articles in the media than PennantPark Investment. MarketBeat recorded 9 mentions for Prospect Capital and 0 mentions for PennantPark Investment. Prospect Capital's average media sentiment score of 0.52 beat PennantPark Investment's score of 0.00 indicating that Prospect Capital is being referred to more favorably in the media.

Company	Overall Sentiment
Prospect Capital	Positive
PennantPark Investment	Neutral

Is PSEC or PNNT more profitable?

PennantPark Investment has a net margin of 11.33% compared to Prospect Capital's net margin of 1.18%. Prospect Capital's return on equity of 12.31% beat PennantPark Investment's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Prospect Capital	1.18%	12.31%	5.79%
PennantPark Investment	11.33%	11.59%	4.23%

Do analysts recommend PSEC or PNNT?

Prospect Capital presently has a consensus target price of $3.00, suggesting a potential downside of 10.98%. PennantPark Investment has a consensus target price of $5.88, suggesting a potential downside of 14.61%. Given Prospect Capital's higher probable upside, equities research analysts clearly believe Prospect Capital is more favorable than PennantPark Investment.

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
PennantPark Investment	1 Sell rating(s)	2 Hold rating(s)	0 Buy rating(s)	0 Strong Buy rating(s)	1.67

Which has more risk & volatility, PSEC or PNNT?

Prospect Capital has a beta of 0.85, meaning that its share price is 15% less volatile than the S&P 500. Comparatively, PennantPark Investment has a beta of 1.01, meaning that its share price is 1% more volatile than the S&P 500.

Do institutionals & insiders believe in PSEC or PNNT?

9.1% of Prospect Capital shares are owned by institutional investors. Comparatively, 26.6% of PennantPark Investment shares are owned by institutional investors. 28.3% of Prospect Capital shares are owned by company insiders. Comparatively, 3.0% of PennantPark Investment shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Which has preferable valuation & earnings, PSEC or PNNT?

Prospect Capital has higher earnings, but lower revenue than PennantPark Investment. Prospect Capital is trading at a lower price-to-earnings ratio than PennantPark 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	-$182.78M	-8.22	$262.83M	-$0.86	-3.92
PennantPark Investment	$56.93M	7.89	$48.85M	$0.15	45.87

Does the MarketBeat Community favor PSEC or PNNT?

PennantPark Investment received 45 more outperform votes than Prospect Capital when rated by MarketBeat users. Likewise, 57.23% of users gave PennantPark Investment 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%
PennantPark Investment	Outperform Votes 364 57.23%	Underperform Votes 272 42.77%

Summary

PennantPark Investment beats Prospect Capital on 11 of the 20 factors compared between the two stocks.