Prospect Capital (NASDAQ:PSEC) and Allied Minds (OTCMKTS:ALLWF) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, earnings, institutional ownership, analyst recommendations, risk and dividends.
Prospect Capital pays an annual dividend of $0.72 per share and has a dividend yield of 11.0%. Allied Minds does not pay a dividend. Prospect Capital pays out 91.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Prospect Capital has raised its dividend for 8 consecutive years.
This table compares Prospect Capital and Allied Minds’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Prospect Capital||$607.01 million||3.95||$299.86 million||$0.79||8.27|
Prospect Capital has higher revenue and earnings than Allied Minds.
Insider & Institutional Ownership
12.2% of Prospect Capital shares are owned by institutional investors. 10.2% of Prospect Capital shares 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.
This table compares Prospect Capital and Allied Minds’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk & Volatility
Prospect Capital has a beta of 0.73, meaning that its stock price is 27% less volatile than the S&P 500. Comparatively, Allied Minds has a beta of 0.38, meaning that its stock price is 62% less volatile than the S&P 500.
This is a breakdown of current ratings and target prices for Prospect Capital and Allied Minds, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Prospect Capital currently has a consensus target price of $5.00, indicating a potential downside of 23.43%. Given Prospect Capital’s higher probable upside, equities research analysts plainly believe Prospect Capital is more favorable than Allied Minds.
Prospect Capital beats Allied Minds on 10 of the 13 factors compared between the two stocks.
Prospect Capital Company Profile
Prospect Capital Corporation is a business development company. It specializes in middle market, mature, mezzanine finance, later stage, emerging growth, leveraged buyouts, refinancing, acquisitions, recapitalizations, turnaround, growth capital, development, capital expenditures and subordinated debt tranches of collateralized loan obligations, cash flow term loans, market place lending and bridge transactions. It also makes real estate investments particularly in multi-family residential real estate asset class. The fund makes secured debt, senior debt, senior and secured term loans, unitranche debt, first-lien and second lien, private debt, private equity, mezzanine debt, and equity investments in private and microcap public businesses. It focuses on both primary origination and secondary loans/portfolios and invests in situations like debt financings for private equity sponsors, acquisitions, dividend recapitalizations, growth financings, bridge loans, cash flow term loans, real estate financings/investments. It also focuses on investing in small-sized and medium-sized private companies rather than large public companies. The fund typically invests across all industry sectors, with a particular expertise in the energy and industrial sectors. It invests in aerospace and defense, chemicals, conglomerate services, consumer services, ecological, electronics, financial services, machinery, manufacturing, media, pharmaceuticals, retail, software, specialty minerals, textiles and leather, transportation, oil and gas production, coal production, materials, industrials, consumer discretionary, information technology, utilities, pipeline, storage, power generation and distribution, renewable and clean energy, oilfield services, healthcare, food and beverage, education, business services, and other select sectors. It prefers to invest in the United States and Canada. The fund seeks to invest between $10 million to $500 million per transaction in companies with EBITDA between $5 million and $150 million, sales value between $25 million and $500 million, and enterprise value between $5 million and $1000 million. It fund also co-invests for larger deals. The fund seeks control acquisitions by providing multiple levels of the capital structure. The fund focuses on sole, agented, club, or syndicated deals.
Allied Minds Company Profile
Allied Minds plc is a private equity and venture capital firm specializing in pre-seed, seed, start-up, and early stage technology investments. The firm prefers to invest across all products, services, and industries with a focus on the life science and technology sector including medical devices, diagnostics, biopharmaceuticals, big data, cyber security, communications, semiconductors, and food safety. It primarily invests in companies based in the United States, but depending on opportunities this could be expanded to a global network of partners and investments. The firm typically invests between $0.25 million and $1 million in seed investments and from $5 million to $10 million in Series A investments. The firm focuses on commercializing technologies from leading United States Universities and national labs. It seeks to take majority equity positions in its portfolio companies. The firm partners with universities to fund licensing deals and corporate spin-outs. It prefers to continue to invest alongside a syndicate for larger Series A and follow-on rounds. Allied Minds plc is based in Boston, Massachusetts with additional offices in London, United Kingdom; Los Angeles, California; Seattle, Washington; New York; New York and Washington, DC.
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