Gladstone Investment Corporation (NASDAQ: GAIN) is one of 575 publicly-traded companies in the “Closed End Funds” industry, but how does it contrast to its rivals? We will compare Gladstone Investment Corporation to related companies based on the strength of its earnings, dividends, valuation, analyst recommendations, risk, institutional ownership and profitability.

Profitability

This table compares Gladstone Investment Corporation and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Gladstone Investment Corporation 55.52% 6.95% 4.21%
Gladstone Investment Corporation Competitors -44.69% 6.75% 5.33%

Analyst Ratings

This is a breakdown of recent ratings and target prices for Gladstone Investment Corporation and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Gladstone Investment Corporation 0 1 1 0 2.50
Gladstone Investment Corporation Competitors 192 1192 1413 14 2.44

Gladstone Investment Corporation presently has a consensus price target of $9.50, suggesting a potential downside of 1.71%. As a group, “Closed End Funds” companies have a potential upside of 39.55%. Given Gladstone Investment Corporation’s rivals higher probable upside, analysts clearly believe Gladstone Investment Corporation has less favorable growth aspects than its rivals.

Insider & Institutional Ownership

18.1% of Gladstone Investment Corporation shares are owned by institutional investors. Comparatively, 23.2% of shares of all “Closed End Funds” companies are owned by institutional investors. 2.4% of Gladstone Investment Corporation shares are owned by company insiders. Comparatively, 4.2% of shares of all “Closed End Funds” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Volatility and Risk

Gladstone Investment Corporation has a beta of 0.73, suggesting that its stock price is 27% less volatile than the S&P 500. Comparatively, Gladstone Investment Corporation’s rivals have a beta of 0.55, suggesting that their average stock price is 45% less volatile than the S&P 500.

Dividends

Gladstone Investment Corporation pays an annual dividend of $0.77 per share and has a dividend yield of 8.0%. Gladstone Investment Corporation pays out 82.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Closed End Funds” companies pay a dividend yield of 8.7% and pay out 87.0% of their earnings in the form of a dividend.

Valuation and Earnings

This table compares Gladstone Investment Corporation and its rivals gross revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Gladstone Investment Corporation N/A N/A 10.39
Gladstone Investment Corporation Competitors $57.58 million $38.86 million -0.15

Gladstone Investment Corporation’s rivals have higher revenue and earnings than Gladstone Investment Corporation. Gladstone Investment Corporation is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Summary

Gladstone Investment Corporation rivals beat Gladstone Investment Corporation on 8 of the 14 factors compared.

About Gladstone Investment Corporation

Gladstone Investment Corporation is an externally managed, closed-end, non-diversified management investment company. The Company’s investment objectives 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 provide its stockholders with long-term capital appreciation in the value of its assets by investing in equity securities, generally in combination with the aforementioned debt securities, of businesses that it believes can grow over time to permit it to sell its equity investments for capital gains. It has investments in sectors, such as chemicals, plastics, and rubber, and home and office furnishings, house wares, and durable consumer products, among others. Its investment advisor is Gladstone Management Corporation.

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