Gladstone Capital Corporation (NASDAQ: GLAD) is one of 577 public companies in the “Closed End Funds” industry, but how does it compare to its competitors? We will compare Gladstone Capital Corporation to similar companies based on the strength of its valuation, institutional ownership, earnings, dividends, profitability, analyst recommendations and risk.

Institutional & Insider Ownership

14.5% of Gladstone Capital Corporation shares are owned by institutional investors. Comparatively, 23.2% of shares of all “Closed End Funds” companies are owned by institutional investors. 6.5% of Gladstone Capital Corporation shares are owned by company insiders. Comparatively, 4.5% 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 is poised for long-term growth.

Volatility and Risk

Gladstone Capital Corporation has a beta of 1.2, meaning that its share price is 20% more volatile than the S&P 500. Comparatively, Gladstone Capital Corporation’s competitors have a beta of 0.55, meaning that their average share price is 45% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and target prices for Gladstone Capital Corporation and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Gladstone Capital Corporation 1 3 1 0 2.00
Gladstone Capital Corporation Competitors 197 1204 1421 14 2.44

Gladstone Capital Corporation presently has a consensus target price of $9.16, indicating a potential downside of 5.25%. As a group, “Closed End Funds” companies have a potential upside of 49.83%. Given Gladstone Capital Corporation’s competitors stronger consensus rating and higher probable upside, analysts clearly believe Gladstone Capital Corporation has less favorable growth aspects than its competitors.

Dividends

Gladstone Capital Corporation pays an annual dividend of $0.84 per share and has a dividend yield of 8.7%. Gladstone Capital Corporation pays out 62.2% of its earnings in the form of a dividend. As a group, “Closed End Funds” companies pay a dividend yield of 8.8% and pay out 85.3% of their earnings in the form of a dividend.

Earnings & Valuation

This table compares Gladstone Capital Corporation and its competitors revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Gladstone Capital Corporation N/A N/A 7.16
Gladstone Capital Corporation Competitors $57.58 million $38.88 million -0.49

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

Profitability

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

Net Margins Return on Equity Return on Assets
Gladstone Capital Corporation 85.01% 9.88% 6.26%
Gladstone Capital Corporation Competitors -47.73% 6.63% 5.23%

Summary

Gladstone Capital Corporation competitors beat Gladstone Capital Corporation on 7 of the 13 factors compared.

About Gladstone Capital Corporation

Gladstone Capital Corporation is a closed-end, non-diversified management investment company, operating as a business development company (BDC). The objectives of the Company 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 to provide its stockholders with long-term capital appreciation in the value of its assets by investing in equity securities of established businesses that it believes can grow over time to permit it to sell its equity investments for capital gains. The Company is focused on investing in lower middle-market companies in the United States. It has investments in south, Midwest, west and northeast of the United States. Its portfolio allocation includes debt investments and equity investments.

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