Comparing Technology Investment Capital (OXSQ) & Gladstone Capital (GLAD)

Technology Investment Capital (NASDAQ: OXSQ) and Gladstone Capital (NASDAQ:GLAD) are both small-cap finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, earnings, institutional ownership, valuation, risk, analyst recommendations and dividends.

Dividends

Technology Investment Capital pays an annual dividend of $0.80 per share and has a dividend yield of 11.4%. Gladstone Capital pays an annual dividend of $0.84 per share and has a dividend yield of 9.2%. Technology Investment Capital pays out 133.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Gladstone Capital pays out 100.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Ratings

This is a summary of current recommendations and price targets for Technology Investment Capital and Gladstone Capital, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Technology Investment Capital 2 0 1 0 1.67
Gladstone Capital 0 2 1 0 2.33

Technology Investment Capital currently has a consensus target price of $5.50, suggesting a potential downside of 21.43%. Gladstone Capital has a consensus target price of $8.70, suggesting a potential downside of 5.23%. Given Gladstone Capital’s stronger consensus rating and higher probable upside, analysts plainly believe Gladstone Capital is more favorable than Technology Investment Capital.

Institutional & Insider Ownership

15.7% of Technology Investment Capital shares are held by institutional investors. Comparatively, 13.4% of Gladstone Capital shares are held by institutional investors. 5.9% of Technology Investment Capital shares are held by insiders. Comparatively, 5.9% of Gladstone Capital shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Volatility and Risk

Technology Investment Capital has a beta of 0.39, suggesting that its share price is 61% less volatile than the S&P 500. Comparatively, Gladstone Capital has a beta of 1.09, suggesting that its share price is 9% more volatile than the S&P 500.

Profitability

This table compares Technology Investment Capital and Gladstone Capital’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Technology Investment Capital 73.85% 7.95% 5.85%
Gladstone Capital 66.28% 9.87% 5.70%

Valuation and Earnings

This table compares Technology Investment Capital and Gladstone Capital’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Technology Investment Capital $61.42 million 5.74 $43.60 million $0.60 11.67
Gladstone Capital $39.23 million 6.29 $17.18 million $0.84 10.93

Technology Investment Capital has higher revenue and earnings than Gladstone Capital. Gladstone Capital is trading at a lower price-to-earnings ratio than Technology Investment Capital, indicating that it is currently the more affordable of the two stocks.

Summary

Technology Investment Capital beats Gladstone Capital on 8 of the 15 factors compared between the two stocks.

Technology Investment Capital Company Profile

TICC Capital Corp. is a business development company, operates as a closed-end, non-diversified management investment company. The firm invests in both public and private companies. It invests in secured and unsecured senior debt, subordinated debt, junior subordinated debt, preferred stock, and common stock. The firm primarily invests in debt and/or equity securities of technology-related companies that operate in the computer software, Internet, information technology infrastructure and services, media, telecommunications and telecommunications equipment, semiconductors, hardware, technology-enabled services, semiconductor capital equipment, medical device technology, diversified technology, and networking systems sectors. It concentrates its investments in companies having annual revenues of less than $200 million and a market capitalization or enterprise value of less than $300 million. The firm invests between $5 million and $30 million per transaction. It seeks to exit its investments within 7 years. It serves as the investment adviser to TICC. TICC Capital Corp., formerly known as Technology Investment Capital Corp., was founded in 2003 and is headquartered in Greenwich, Connecticut.

Gladstone Capital Company Profile

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.

Receive News & Ratings for Technology Investment Capital Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Technology Investment Capital and related companies with MarketBeat.com's FREE daily email newsletter.


Leave a Reply