Prospect Capital (PSEC) Competitors

Prospect Capital (NASDAQ:PSEC) and Invesco (NYSE:IVZ) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, risk, community ranking, profitability, institutional ownership, media sentiment, earnings, dividends and analyst recommendations.

Do institutionals & insiders have more ownership in PSEC or IVZ?

9.1% of Prospect Capital shares are held by institutional investors. Comparatively, 66.1% of Invesco shares are held by institutional investors. 28.3% of Prospect Capital shares are held by company insiders. Comparatively, 1.2% of Invesco shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Do analysts rate PSEC or IVZ?

Prospect Capital currently has a consensus price target of $3.50, suggesting a potential downside of 1.96%. Invesco has a consensus price target of $17.25, suggesting a potential upside of 24.01%. Given Invesco's stronger consensus rating and higher possible upside, analysts clearly believe Invesco 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
Invesco	1 Sell rating(s)	13 Hold rating(s)	1 Buy rating(s)	0 Strong Buy rating(s)	2.00

Is PSEC or IVZ a better dividend stock?

Prospect Capital pays an annual dividend of $0.54 per share and has a dividend yield of 15.1%. Invesco pays an annual dividend of $0.84 per share and has a dividend yield of 6.0%. Prospect Capital pays out -270.0% of its earnings in the form of a dividend. Invesco pays out 67.2% 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.

Does the MarketBeat Community believe in PSEC or IVZ?

Invesco received 515 more outperform votes than Prospect Capital when rated by MarketBeat users. Likewise, 63.18% of users gave Invesco 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%
Invesco	Outperform Votes 834 63.18%	Underperform Votes 486 36.82%

Does the media favor PSEC or IVZ?

In the previous week, Invesco had 9 more articles in the media than Prospect Capital. MarketBeat recorded 19 mentions for Invesco and 10 mentions for Prospect Capital. Prospect Capital's average media sentiment score of 1.21 beat Invesco's score of 0.99 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	6 Very Positive mention(s)	1 Positive mention(s)	0 Neutral mention(s)	1 Negative mention(s)	0 Very Negative mention(s)	Positive
Invesco	12 Very Positive mention(s)	2 Positive mention(s)	4 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Is PSEC or IVZ more profitable?

Invesco has a net margin of 12.77% compared to Prospect Capital's net margin of 1.18%. Prospect Capital's return on equity of 12.31% beat Invesco's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Prospect Capital	1.18%	12.31%	5.79%
Invesco	12.77%	8.18%	3.68%

Which has more risk and volatility, PSEC or IVZ?

Prospect Capital has a beta of 0.85, meaning that its stock price is 15% less volatile than the S&P 500. Comparatively, Invesco has a beta of 1.26, meaning that its stock price is 26% more volatile than the S&P 500.

Which has better earnings and valuation, PSEC or IVZ?

Invesco has higher revenue and earnings than Prospect Capital. Prospect Capital is trading at a lower price-to-earnings ratio than Invesco, 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	15.75	$262.83M	-$0.20	-17.85
Invesco	$6.12B	1.02	$774.80M	$1.25	11.13

Summary

Invesco beats Prospect Capital on 13 of the 20 factors compared between the two stocks.