Capitala Finance Corp. (CPTA) versus GSV Capital Corp (GSVC) Head to Head Analysis
Capitala Finance Corp. (NASDAQ: CPTA) and GSV Capital Corp (NASDAQ:GSVC) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, risk, dividends and earnings.
Capitala Finance Corp. pays an annual dividend of $1.56 per share and has a dividend yield of 17.4%. GSV Capital Corp does not pay a dividend. Capitala Finance Corp. pays out 458.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
This is a breakdown of recent ratings and recommmendations for Capitala Finance Corp. and GSV Capital Corp, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Capitala Finance Corp.||0||4||3||0||2.43|
|GSV Capital Corp||0||1||0||0||2.00|
Capitala Finance Corp. presently has a consensus target price of $14.92, suggesting a potential upside of 66.85%. Given Capitala Finance Corp.’s stronger consensus rating and higher possible upside, research analysts clearly believe Capitala Finance Corp. is more favorable than GSV Capital Corp.
Risk and Volatility
Capitala Finance Corp. has a beta of 1.11, suggesting that its share price is 11% more volatile than the S&P 500. Comparatively, GSV Capital Corp has a beta of 1.29, suggesting that its share price is 29% more volatile than the S&P 500.
Institutional & Insider Ownership
28.2% of Capitala Finance Corp. shares are owned by institutional investors. Comparatively, 29.7% of GSV Capital Corp shares are owned by institutional investors. 8.4% of Capitala Finance Corp. 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, hedge funds and large money managers believe a stock will outperform the market over the long term.
This table compares Capitala Finance Corp. and GSV Capital Corp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Capitala Finance Corp.||8.91%||8.55%||3.66%|
|GSV Capital Corp||-1,701.22%||-5.43%||-3.25%|
Earnings and Valuation
This table compares Capitala Finance Corp. and GSV Capital Corp’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Capitala Finance Corp.||N/A||N/A||N/A||$0.34||26.29|
|GSV Capital Corp||N/A||N/A||N/A||($1.09)||-5.14|
GSV Capital Corp is trading at a lower price-to-earnings ratio than Capitala Finance Corp., indicating that it is currently the more affordable of the two stocks.
Capitala Finance Corp. beats GSV Capital Corp on 9 of the 12 factors compared between the two stocks.
About Capitala Finance Corp.
Capitala Finance Corp. is an externally managed non-diversified, closed-end management investment company. The Company’s investment objective is to generate both current income and capital appreciation through debt and equity investments. Both directly and through its subsidiaries that are licensed by the United States Small Business Administration (SBA), the Company offers financing to business owners, management teams and financial sponsors for change of ownership transactions, recapitalizations, strategic acquisitions, business expansion and other growth initiatives. The Company provides capital to lower and traditional middle-market companies in the United States, with a non-exclusive emphasis on the Southeast, Southwest and Mid-Atlantic regions. The Company invests in first lien, second lien and subordinated loans. The Company’s investment advisor is Capitala Investment Advisors, LLC.
About GSV Capital Corp
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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