Garrison Capital (NASDAQ: GARS) and Safeguard Scientifics (NYSE:SFE) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, risk, earnings, institutional ownership, valuation, dividends and profitability.

Valuation & Earnings

This table compares Garrison Capital and Safeguard Scientifics’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Garrison Capital N/A N/A N/A N/A N/A
Safeguard Scientifics N/A N/A -$17.72 million ($4.76) -2.78

Volatility and Risk

Garrison Capital has a beta of 0.24, meaning that its share price is 76% less volatile than the S&P 500. Comparatively, Safeguard Scientifics has a beta of 1.32, meaning that its share price is 32% more volatile than the S&P 500.

Dividends

Garrison Capital pays an annual dividend of $1.12 per share and has a dividend yield of 13.3%. Safeguard Scientifics does not pay a dividend.

Institutional and Insider Ownership

22.0% of Garrison Capital shares are held by institutional investors. Comparatively, 77.6% of Safeguard Scientifics shares are held by institutional investors. 5.8% of Garrison Capital shares are held by insiders. Comparatively, 2.7% of Safeguard Scientifics shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings for Garrison Capital and Safeguard Scientifics, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Garrison Capital 0 5 1 0 2.17
Safeguard Scientifics 0 0 0 0 N/A

Garrison Capital currently has a consensus price target of $10.17, indicating a potential upside of 20.46%. Given Garrison Capital’s higher probable upside, equities research analysts clearly believe Garrison Capital is more favorable than Safeguard Scientifics.

Profitability

This table compares Garrison Capital and Safeguard Scientifics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Garrison Capital -0.38% 8.33% 3.97%
Safeguard Scientifics N/A -61.90% -42.77%

Summary

Garrison Capital beats Safeguard Scientifics on 6 of the 9 factors compared between the two stocks.

Garrison Capital Company Profile

Garrison Capital Inc. is a managed, closed-end, non-diversified management investment company. The Company’s investment objective is to generate current income and capital appreciation by making investments primarily in debt securities and loans of the United States-based middle-market companies, which it defines as those having annual earnings before interest, taxes and depreciation, or EBITDA, of certain amount. It invests or provides direct lending in first lien senior secured loans, second lien senior secured loans, one-stop senior secured loans or unitranche loans, subordinated or mezzanine loans, unsecured consumer loans and to a lesser extent, selected equity co-investments in middle-market companies. The Company intends to generate risk-adjusted net returns by assembling a portfolio of investments. The Company’s investment advisor is Garrison Capital Advisers LLC.

Safeguard Scientifics Company Profile

Safeguard Scientifics, Inc. is engaged in providing capital to technology companies within the fields of healthcare, financial services and digital media. The Company holds interest in companies, which it refers to as partner companies. As of December 31, 2016, the Company held interests in 29 non-consolidated partner companies. The Company offers operational and management support to each of its partner companies. In addition to management and operational support, the Company offers ongoing planning and development assessment. It provides mentoring, advice and guidance to develop partner company management. The Company serves on the boards of directors of its partner companies, working with them to develop and implement strategic and operating plans. It measures and monitors achievement of these plans through regular review of operational and financial performance measurements.

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