Gladstone Capital Corporation (GLAD) versus Center Coast MLP & Infrastructure Fund (CEN) Critical Review
Gladstone Capital Corporation (NASDAQ: GLAD) and Center Coast MLP & Infrastructure Fund (NYSE:CEN) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, analyst recommendations, valuation, profitabiliy, dividends, institutional ownership and earnings.
Institutional and Insider Ownership
15.9% of Gladstone Capital Corporation shares are owned by institutional investors. 6.5% of Gladstone Capital Corporation shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
This table compares Gladstone Capital Corporation and Center Coast MLP & Infrastructure Fund’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Gladstone Capital Corporation||85.01%||9.88%||6.26%|
|Center Coast MLP & Infrastructure Fund||N/A||N/A||N/A|
Valuation and Earnings
This table compares Gladstone Capital Corporation and Center Coast MLP & Infrastructure Fund’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Gladstone Capital Corporation||N/A||N/A||N/A||$1.35||7.33|
|Center Coast MLP & Infrastructure Fund||N/A||N/A||N/A||N/A||N/A|
Gladstone Capital Corporation pays an annual dividend of $0.84 per share and has a dividend yield of 8.5%. Center Coast MLP & Infrastructure Fund does not pay a dividend. Gladstone Capital Corporation pays out 62.2% of its earnings in the form of a dividend.
This is a breakdown of recent ratings and recommmendations for Gladstone Capital Corporation and Center Coast MLP & Infrastructure Fund, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Gladstone Capital Corporation||1||1||1||0||2.00|
|Center Coast MLP & Infrastructure Fund||0||0||0||0||N/A|
Gladstone Capital Corporation presently has a consensus price target of $9.08, suggesting a potential downside of 8.25%. Given Gladstone Capital Corporation’s higher possible upside, analysts plainly believe Gladstone Capital Corporation is more favorable than Center Coast MLP & Infrastructure Fund.
Gladstone Capital Corporation beats Center Coast MLP & Infrastructure Fund on 8 of the 9 factors compared between the two stocks.
Gladstone Capital Corporation Company Profile
Gladstone Capital Corporation is a closed-end, non-diversified management investment company, operating as a business development company (BDC). The objectives of the Company are to achieve and grow current income by investing in debt securities of established businesses that it believes will provide stable earnings and cash flow to pay expenses, make principal and interest payments on its outstanding indebtedness and make distributions to stockholders that grow over time, and to provide its stockholders with long-term capital appreciation in the value of its assets by investing in equity securities of established businesses that it believes can grow over time to permit it to sell its equity investments for capital gains. The Company is focused on investing in lower middle-market companies in the United States. It has investments in south, Midwest, west and northeast of the United States. Its portfolio allocation includes debt investments and equity investments.
Center Coast MLP & Infrastructure Fund Company Profile
Center Coast MLP & Infrastructure Fund (the Fund) is a non-diversified, closed-end management investment company. The Fund’s investment objective is to provide a high level of total return with an emphasis on distributions to shareholders. The Fund seeks to achieve its investment objective by investing primarily in a portfolio of master limited partnerships (MLPs) and energy infrastructure companies. Under normal market conditions, the Fund will invest at least 80% of its Managed Assets in securities of MLPs and energy infrastructure companies. The Fund may invest up to 20% of its Managed Assets in unregistered or restricted securities, including securities issued by private companies. Its private investments may include investments in entities formed to own and operate particular energy infrastructure assets. The Fund invests in various sectors, such as fuel distribution and marketing, and natural gas transportation and storage. The Fund’s advisor is Center Coast Capital Advisors, LP.
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