GSV Capital Corp (GSVC) and PennantPark Floating Rate Capital (PFLT) Financial Analysis
GSV Capital Corp (NASDAQ: GSVC) and PennantPark Floating Rate Capital (NASDAQ:PFLT) 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.
PennantPark Floating Rate Capital pays an annual dividend of $1.14 per share and has a dividend yield of 8.2%. GSV Capital Corp does not pay a dividend. PennantPark Floating Rate Capital pays out 78.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Volatility and Risk
GSV Capital Corp has a beta of 1.25, suggesting that its share price is 25% more volatile than the S&P 500. Comparatively, PennantPark Floating Rate Capital has a beta of 0.6, suggesting that its share price is 40% less volatile than the S&P 500.
This is a summary of current recommendations and price targets for GSV Capital Corp and PennantPark Floating Rate Capital, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|GSV Capital Corp||0||1||0||0||2.00|
|PennantPark Floating Rate Capital||0||1||4||0||2.80|
PennantPark Floating Rate Capital has a consensus target price of $14.90, suggesting a potential upside of 7.50%. Given PennantPark Floating Rate Capital’s stronger consensus rating and higher probable upside, analysts plainly believe PennantPark Floating Rate Capital is more favorable than GSV Capital Corp.
Institutional & Insider Ownership
28.9% of GSV Capital Corp shares are held by institutional investors. Comparatively, 30.5% of PennantPark Floating Rate Capital shares are held by institutional investors. 0.7% of GSV Capital Corp shares are held by insiders. Comparatively, 1.2% of PennantPark Floating Rate 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.
Earnings & Valuation
This table compares GSV Capital Corp and PennantPark Floating Rate Capital’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|GSV Capital Corp||$740,000.00||168.45||-$74.99 million||($1.09)||-5.16|
|PennantPark Floating Rate Capital||$46.30 million||9.72||$33.49 million||$1.46||9.49|
PennantPark Floating Rate Capital has higher revenue and earnings than GSV Capital Corp. GSV Capital Corp is trading at a lower price-to-earnings ratio than PennantPark Floating Rate Capital, indicating that it is currently the more affordable of the two stocks.
This table compares GSV Capital Corp and PennantPark Floating Rate Capital’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|GSV Capital Corp||-1,701.22%||-5.43%||-3.25%|
|PennantPark Floating Rate Capital||73.28%||7.26%||4.15%|
PennantPark Floating Rate Capital beats GSV Capital Corp on 12 of the 15 factors compared between the two stocks.
About GSV Capital Corp
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.
About PennantPark Floating Rate Capital
PennantPark Floating Rate Capital Ltd. is a business development company. The Company is a closed-end, externally managed and non-diversified investment company. Its investment objectives are to generate current income and capital appreciation by investing primarily in floating rate loans and other investments made to the United States middle-market companies. It provides first lien secured debt and other opportunistic financings (senior notes, second lien, mezzanine, private high yield debt, and preferred and common stock) to middle market sponsors and companies. Its investments may include equity features, such as direct investments in the equity securities of borrowers or warrants or options to buy a minority interest in a portfolio company. It has investments in various sectors, including aerospace and defense; consumer services; healthcare and pharmaceuticals, and others. Its investment activities are managed by the investment advisor, PennantPark Investment Advisers, LLC.
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