Gladstone Capital (NASDAQ:GLAD) and Invesco Trust for Investment GradeMncpls (NYSE:VGM) are both small-cap finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, institutional ownership, profitability, risk, earnings, analyst recommendations and valuation.
This is a breakdown of current recommendations and price targets for Gladstone Capital and Invesco Trust for Investment GradeMncpls, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Invesco Trust for Investment GradeMncpls||0||0||0||0||N/A|
Insider and Institutional Ownership
11.8% of Gladstone Capital shares are held by institutional investors. Comparatively, 16.8% of Invesco Trust for Investment GradeMncpls shares are held by institutional investors. 5.9% of Gladstone Capital shares are held by company insiders. Comparatively, 1.0% of Invesco Trust for Investment GradeMncpls shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
This table compares Gladstone Capital and Invesco Trust for Investment GradeMncpls’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Invesco Trust for Investment GradeMncpls||N/A||N/A||N/A|
Volatility & Risk
Gladstone Capital has a beta of 1.27, meaning that its share price is 27% more volatile than the S&P 500. Comparatively, Invesco Trust for Investment GradeMncpls has a beta of 0.12, meaning that its share price is 88% less volatile than the S&P 500.
Gladstone Capital pays an annual dividend of $0.84 per share and has a dividend yield of 9.0%. Invesco Trust for Investment GradeMncpls pays an annual dividend of $0.64 per share and has a dividend yield of 5.2%. Gladstone Capital pays out 98.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Valuation and Earnings
This table compares Gladstone Capital and Invesco Trust for Investment GradeMncpls’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Gladstone Capital||$45.58 million||5.83||$18.64 million||$0.85||10.96|
|Invesco Trust for Investment GradeMncpls||N/A||N/A||N/A||N/A||N/A|
Gladstone Capital has higher revenue and earnings than Invesco Trust for Investment GradeMncpls.
Gladstone Capital beats Invesco Trust for Investment GradeMncpls on 8 of the 10 factors compared between the two stocks.
About Gladstone Capital
Gladstone Capital Corporation is a private equity and a venture capital fund specializing in lower middle market, growth capital, add on acquisitions, debt investments in senior loans, second lien loans, senior subordinated loans, junior subordinated loans, and mezzanine loans and equity investments in the form of common stock, preferred stock, limited liability company interests, or warrants. The fund also makes private equity investments in acquisitions, buyouts and recapitalizations, and refinancing existing debts. It targets small and medium-sized companies in United States. It invests in companies engaged in the business services, light and specialty manufacturing, niche industrial products and services, specialty consumer products and services, energy services, transportation and logistics, healthcare and education services, specialty chemicals, media and communications and aerospace and defense. The fund seeks to invest between $7 million and $30 million in companies that have between $20 million and $150 million in sales and EBITDA between $3 million and $25 million. It prefers to acquire minority stakes. It seeks to exit its investments through strategic acquisitions by other industry participants or financial buyers, initial public offerings of common stock, or other capital market transactions.
About Invesco Trust for Investment GradeMncpls
Invesco Trust for Investment Grade Municipals is a closed-ended fixed income mutual fund launched by Invesco Ltd. The fund is co-managed by Invesco Advisers, Inc., INVESCO Asset Management (Japan) Limited, INVESCO Asset Management Deutschland GmbH, INVESCO Asset Management Limited, Invesco Canada Ltd., Invesco Hong Kong Limited, and INVESCO Senior Secured Management, Inc. It invests in the fixed income markets of the United States. The fund primarily invests in investment grade municipal securities which include municipal bonds, municipal notes, municipal commercial paper, and lease obligations. It employs fundamental analysis with bottom-up security selection approach to create its portfolio. The fund was formerly known as Invesco Van Kampen Trust for Investment Grade Municipals. Invesco Trust for Investment Grade Municipals was formed on January 24, 1992 and is domiciled in the United States.
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