Sixth Street Specialty Lending (NYSE:TSLX) and C-Bond Systems (OTCMKTS:CBNT) are both small-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, valuation, earnings, analyst recommendations, profitability, risk and dividends.
Analyst Recommendations
This is a summary of current recommendations and price targets for Sixth Street Specialty Lending and C-Bond Systems, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Sixth Street Specialty Lending | 0 | 0 | 7 | 0 | 3.00 |
| C-Bond Systems | 0 | 0 | 0 | 0 | N/A |
Sixth Street Specialty Lending presently has a consensus price target of $19.1429, suggesting a potential downside of 13.58%. Given Sixth Street Specialty Lending's higher possible upside, analysts clearly believe Sixth Street Specialty Lending is more favorable than C-Bond Systems.
Insider and Institutional Ownership
55.7% of Sixth Street Specialty Lending shares are owned by institutional investors. 4.4% of Sixth Street Specialty Lending shares are owned by company insiders. Comparatively, 22.2% of C-Bond Systems shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Volatility and Risk
Sixth Street Specialty Lending has a beta of 1.16, meaning that its share price is 16% more volatile than the S&P 500. Comparatively, C-Bond Systems has a beta of 0.43, meaning that its share price is 57% less volatile than the S&P 500.
Valuation & Earnings
This table compares Sixth Street Specialty Lending and C-Bond Systems' top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Sixth Street Specialty Lending | $251.49 million | 6.39 | $128.28 million | $1.94 | 11.46 |
| C-Bond Systems | $600,000.00 | 13.15 | $-7,240,000.00 | ($0.08) | -0.43 |
Sixth Street Specialty Lending has higher revenue and earnings than C-Bond Systems. C-Bond Systems is trading at a lower price-to-earnings ratio than Sixth Street Specialty Lending, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Sixth Street Specialty Lending and C-Bond Systems' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Sixth Street Specialty Lending | 59.17% | 13.52% | 6.95% |
| C-Bond Systems | -743.46% | N/A | -1,106.03% |
Summary
Sixth Street Specialty Lending beats C-Bond Systems on 11 of the 13 factors compared between the two stocks.
