Solar Senior Capital (NASDAQ: SUNS) and GSV Capital (NASDAQ:GSVC) are both small-cap financials companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, risk, earnings, institutional ownership, analyst recommendations, profitability and dividends.
This is a summary of current recommendations and price targets for Solar Senior Capital and GSV Capital, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Solar Senior Capital||0||0||1||0||3.00|
Earnings and Valuation
This table compares Solar Senior Capital and GSV Capital’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Solar Senior Capital||$27.20 million||10.45||$24.25 million||$1.44||12.31|
|GSV Capital||$740,000.00||200.52||-$74.99 million||($0.58)||-12.00|
Solar Senior Capital has higher revenue and earnings than GSV Capital. GSV Capital is trading at a lower price-to-earnings ratio than Solar Senior Capital, indicating that it is currently the more affordable of the two stocks.
Solar Senior Capital pays an annual dividend of $1.41 per share and has a dividend yield of 8.0%. GSV Capital does not pay a dividend. Solar Senior Capital pays out 97.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Risk and Volatility
Solar Senior Capital has a beta of 0.64, suggesting that its stock price is 36% less volatile than the S&P 500. Comparatively, GSV Capital has a beta of 0.9, suggesting that its stock price is 10% less volatile than the S&P 500.
Institutional and Insider Ownership
30.2% of Solar Senior Capital shares are held by institutional investors. Comparatively, 31.5% of GSV Capital shares are held by institutional investors. 5.6% of Solar Senior Capital shares are held by insiders. Comparatively, 0.7% of GSV Capital shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
This table compares Solar Senior Capital and GSV Capital’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Solar Senior Capital||76.43%||8.39%||4.48%|
Solar Senior Capital beats GSV Capital on 12 of the 16 factors compared between the two stocks.
About Solar Senior Capital
Solar Senior Capital Ltd. is a closed-end, externally managed, non-diversified management investment company. The Company’s investment objective is to seek to maximize current income consistent with the preservation of capital. The Company seeks to achieve its investment objective by directly and indirectly investing in senior loans, including first lien, unitranche, and second lien debt instruments, made to private middle-market companies whose debt is rated below investment grade, which it refers to collectively as senior loans. It may also invest in debt of public companies that are thinly traded or in equity securities. Under normal market conditions, at least 80% of the value of its net assets (including the amount of any borrowings for investment purposes) will be invested in senior loans. It invests in privately held the United States middle-market companies. Its investment activities are managed by Solar Capital Partners, LLC (Solar Capital Partners or the Investment Advisor).
About GSV Capital
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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