Head-To-Head Survey: Prospect Capital Corporation (PSEC) & GSV Capital Corp (GSVC)
Prospect Capital Corporation (NASDAQ: PSEC) and GSV Capital Corp (NASDAQ:GSVC) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, dividends, valuation, earnings, risk, analyst recommendations and profitability.
Valuation & Earnings
This table compares Prospect Capital Corporation and GSV Capital Corp’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Prospect Capital Corporation||N/A||N/A||N/A||$0.70||9.55|
|GSV Capital Corp||N/A||N/A||N/A||($1.09)||-4.57|
GSV Capital Corp is trading at a lower price-to-earnings ratio than Prospect Capital Corporation, indicating that it is currently the more affordable of the two stocks.
Prospect Capital Corporation pays an annual dividend of $1.00 per share and has a dividend yield of 15.0%. GSV Capital Corp does not pay a dividend. Prospect Capital Corporation pays out 142.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Institutional and Insider Ownership
15.2% of Prospect Capital Corporation shares are owned by institutional investors. Comparatively, 29.7% of GSV Capital Corp shares are owned by institutional investors. 7.1% of Prospect Capital Corporation shares are owned by insiders. Comparatively, 0.7% of GSV Capital Corp shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
This table compares Prospect Capital Corporation and GSV Capital Corp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Prospect Capital Corporation||36.08%||8.98%||4.94%|
|GSV Capital Corp||-1,701.22%||-5.43%||-3.25%|
Volatility & Risk
Prospect Capital Corporation has a beta of 0.5, meaning that its share price is 50% less volatile than the S&P 500. Comparatively, GSV Capital Corp has a beta of 1.26, meaning that its share price is 26% more volatile than the S&P 500.
This is a breakdown of recent recommendations and price targets for Prospect Capital Corporation and GSV Capital Corp, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Prospect Capital Corporation||1||3||0||0||1.75|
|GSV Capital Corp||0||1||0||0||2.00|
Prospect Capital Corporation currently has a consensus price target of $7.17, suggesting a potential upside of 7.21%. Given Prospect Capital Corporation’s higher probable upside, analysts plainly believe Prospect Capital Corporation is more favorable than GSV Capital Corp.
Prospect Capital Corporation beats GSV Capital Corp on 7 of the 11 factors compared between the two stocks.
Prospect Capital Corporation Company Profile
Prospect Capital Corporation is a financial services company. The Company primarily lends to and invests in middle market privately held companies. The Company is a closed-end investment company. Its investment objective is to generate both current income and long-term capital appreciation through debt and equity investments. The Company invests primarily in senior and subordinated debt and equity of private companies in need of capital for acquisitions, divestitures, growth, development, recapitalizations and other purposes. The Company makes investments, including lending in private equity sponsored transactions, lending directly to companies not owned by private equity firms, control investments in corporate operating companies, control investments in financial companies, investments in structured credit, real estate investments, investments in syndicated debt, aircraft leasing and online lending. The Company is managed by its investment advisor, Prospect Capital Management L.P.
GSV Capital Corp Company Profile
GSV Capital Corp. (GSV Capital) is an externally managed, non-diversified closed-end management investment company. The Company’s investment objective is to maximize its portfolio’s total return, principally by seeking capital gains on its equity and equity-related investments. The Company invests principally in the equity securities, which are venture-capital-backed emerging companies. The Company acquires its investments through direct investments with portfolio companies, secondary marketplaces for private companies and negotiations with selling stockholders. The Company may also invest in select publicly traded equity securities or certain non-United States companies that otherwise meet its investment criteria. It seeks to invest approximately 90% of its portfolio in late-stage companies and the remaining approximately 10% in emerging companies that fit within its targeted areas. Its investment activities are managed by its investment advisor, GSV Asset Management, LLC.
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