PSEC vs. GBDC, CSWC, TSLX, NMFC, PFLT, LGIH, BOH, PJT, CVBF, and CBU
Should you be buying Prospect Capital stock or one of its competitors? The main competitors of Prospect Capital include Golub Capital BDC (GBDC), Capital Southwest (CSWC), Sixth Street Specialty Lending (TSLX), New Mountain Finance (NMFC), PennantPark Floating Rate Capital (PFLT), LGI Homes (LGIH), Bank of Hawaii (BOH), PJT Partners (PJT), CVB Financial (CVBF), and Community Bank System (CBU). These companies are all part of the "finance" sector.
Golub Capital BDC (NASDAQ:GBDC) and Prospect Capital (NASDAQ:PSEC) are both mid-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, analyst recommendations, media sentiment, profitability, valuation, earnings, risk, institutional ownership and community ranking.
Golub Capital BDC has a beta of 0.57, indicating that its share price is 43% less volatile than the S&P 500. Comparatively, Prospect Capital has a beta of 1, indicating that its share price has a similar volatility profile to the S&P 500.
In the previous week, Golub Capital BDC had 6 more articles in the media than Prospect Capital. MarketBeat recorded 7 mentions for Golub Capital BDC and 1 mentions for Prospect Capital. Golub Capital BDC's average media sentiment score of 1.89 beat Prospect Capital's score of 1.36 indicating that Prospect Capital is being referred to more favorably in the news media.
Golub Capital BDC has higher earnings, but lower revenue than Prospect Capital. Prospect Capital is trading at a lower price-to-earnings ratio than Golub Capital BDC, indicating that it is currently the more affordable of the two stocks.
Golub Capital BDC has a net margin of 48.94% compared to Golub Capital BDC's net margin of -1.47%. Golub Capital BDC's return on equity of 13.48% beat Prospect Capital's return on equity.
Golub Capital BDC presently has a consensus target price of $16.40, suggesting a potential downside of 2.15%. Prospect Capital has a consensus target price of $5.75, suggesting a potential upside of 5.31%. Given Golub Capital BDC's higher possible upside, analysts clearly believe Prospect Capital is more favorable than Golub Capital BDC.
Golub Capital BDC pays an annual dividend of $1.56 per share and has a dividend yield of 9.3%. Prospect Capital pays an annual dividend of $0.72 per share and has a dividend yield of 13.2%. Golub Capital BDC pays out 85.7% 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 pays out -360.0% of its earnings in the form of a dividend. Prospect Capital is clearly the better dividend stock, given its higher yield and lower payout ratio.
42.4% of Golub Capital BDC shares are held by institutional investors. Comparatively, 9.1% of Prospect Capital shares are held by institutional investors. 2.7% of Golub Capital BDC shares are held by insiders. Comparatively, 26.7% of Prospect Capital shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Prospect Capital received 19 more outperform votes than Golub Capital BDC when rated by MarketBeat users. However, 56.60% of users gave Golub Capital BDC an outperform vote while only 52.38% of users gave Prospect Capital an outperform vote.
Summary
Golub Capital BDC and Prospect Capital tied by winning 10 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding PSEC and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NASDAQ and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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