GSV Capital (NASDAQ: GSVC) and MVC Capital (NYSE:MVC) are both small-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, earnings, institutional ownership, analyst recommendations, risk, dividends and valuation.
MVC Capital pays an annual dividend of $0.60 per share and has a dividend yield of 6.0%. GSV Capital does not pay a dividend. MVC Capital pays out -176.5% of its earnings in the form of a dividend.
This table compares GSV Capital and MVC Capital’s net margins, return on equity and return on assets.
||Return on Equity
||Return on Assets
Valuation and Earnings
This table compares GSV Capital and MVC Capital’s gross revenue, earnings per share (EPS) and valuation.
||Earnings Per Share
MVC Capital has higher revenue and earnings than GSV Capital. MVC Capital is trading at a lower price-to-earnings ratio than GSV Capital, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
GSV Capital has a beta of 1.35, indicating that its share price is 35% more volatile than the S&P 500. Comparatively, MVC Capital has a beta of 0.67, indicating that its share price is 33% less volatile than the S&P 500.
This is a breakdown of recent ratings and recommmendations for GSV Capital and MVC Capital, as provided by MarketBeat.com.
||Strong Buy Ratings
GSV Capital presently has a consensus price target of $11.00, suggesting a potential upside of 53.42%. MVC Capital has a consensus price target of $12.25, suggesting a potential upside of 21.77%. Given GSV Capital’s higher possible upside, research analysts plainly believe GSV Capital is more favorable than MVC Capital.
Institutional & Insider Ownership
34.6% of GSV Capital shares are held by institutional investors. Comparatively, 46.4% of MVC Capital shares are held by institutional investors. 1.0% of GSV Capital shares are held by company insiders. Comparatively, 10.9% of MVC Capital shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
MVC Capital beats GSV Capital on 11 of the 15 factors compared between the two stocks.
GSV Capital Company Profile
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.
MVC Capital Company Profile
MVC Capital, Inc. is a non-diversified closed-end management investment company. The Company’s investment objective is to seek to maximize total return from capital appreciation and/or income. The Company’s segments are its investing operations as a business development company, which includes MVC Cayman and MVC Turf, LLC and MVC Financial Services, Inc. (MVCFS). It seeks to achieve its investment objective by providing debt and equity financing to companies, including privately owned (portfolio companies), and by establishing a subsidiary or subsidiaries that would serve as general partner to a private equity or other investment fund(s). It has investments in various sectors, including energy, specialty chemicals, automotive dealerships, electrical engineering, medical devices, industrial manufacturing, financial services and information technology. The Tokarz Group Advisers LLC is the investment advisor of the Company.
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