Prospect Capital (PSEC) Competitors

Prospect Capital (NASDAQ:PSEC) and FS KKR Capital (NYSE:FSK) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, dividends, earnings, valuation, institutional ownership, profitability, analyst recommendations and media sentiment.

Is PSEC or FSK a better dividend stock?

Prospect Capital pays an annual dividend of $0.54 per share and has a dividend yield of 18.6%. FS KKR Capital pays an annual dividend of $2.56 per share and has a dividend yield of 12.8%. Prospect Capital pays out -62.8% of its earnings in the form of a dividend. FS KKR Capital pays out 134.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Prospect Capital is clearly the better dividend stock, given its higher yield and lower payout ratio.

Which has more risk and volatility, PSEC or FSK?

Prospect Capital has a beta of 0.85, meaning that its stock price is 15% less volatile than the S&P 500. Comparatively, FS KKR Capital has a beta of 0.93, meaning that its stock price is 7% less volatile than the S&P 500.

Is PSEC or FSK more profitable?

FS KKR Capital has a net margin of 31.53% compared to Prospect Capital's net margin of -36.07%. Prospect Capital's return on equity of 12.43% beat FS KKR Capital's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Prospect Capital	-36.07%	12.43%	5.83%
FS KKR Capital	31.53%	11.78%	5.27%

Do analysts rate PSEC or FSK?

Prospect Capital currently has a consensus price target of $3.00, suggesting a potential upside of 3.09%. FS KKR Capital has a consensus price target of $19.50, suggesting a potential downside of 2.77%. Given Prospect Capital's higher probable upside, research analysts clearly believe Prospect Capital is more favorable than FS KKR 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
FS KKR Capital	1 Sell rating(s)	5 Hold rating(s)	0 Buy rating(s)	0 Strong Buy rating(s)	1.83

Does the media favor PSEC or FSK?

In the previous week, Prospect Capital had 6 more articles in the media than FS KKR Capital. MarketBeat recorded 7 mentions for Prospect Capital and 1 mentions for FS KKR Capital. FS KKR Capital's average media sentiment score of 1.21 beat Prospect Capital's score of 0.68 indicating that FS KKR Capital 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)	0 Positive mention(s)	2 Neutral mention(s)	1 Negative mention(s)	0 Very Negative mention(s)	Positive
FS KKR Capital	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 preferable earnings & valuation, PSEC or FSK?

FS KKR Capital has higher revenue and earnings than Prospect Capital. Prospect Capital is trading at a lower price-to-earnings ratio than FS KKR 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	$861.66M	1.51	$262.83M	-$0.86	-3.38
FS KKR Capital	$1.72B	N/A	$585M	$1.90	10.56

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

9.1% of Prospect Capital shares are held by institutional investors. Comparatively, 36.3% of FS KKR Capital shares are held by institutional investors. 28.3% of Prospect Capital shares are held by company insiders. Comparatively, 0.3% of FS KKR Capital shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

FS KKR Capital beats Prospect Capital on 9 of the 16 factors compared between the two stocks.