TSLX vs. GBDC, PSEC, NMFC, CSWC, PFLT, GAIN, PNNT, TPVG, SCM, and PTMN
Should you be buying Sixth Street Specialty Lending stock or one of its competitors? The main competitors of Sixth Street Specialty Lending include Golub Capital BDC (GBDC), Prospect Capital (PSEC), New Mountain Finance (NMFC), Capital Southwest (CSWC), PennantPark Floating Rate Capital (PFLT), Gladstone Investment (GAIN), PennantPark Investment (PNNT), TriplePoint Venture Growth BDC (TPVG), Stellus Capital Investment (SCM), and Portman Ridge Finance (PTMN). These companies are all part of the "investors, not elsewhere classified" industry.
Golub Capital BDC (NASDAQ:GBDC) and Sixth Street Specialty Lending (NYSE:TSLX) are both mid-cap finance companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, community ranking, risk, media sentiment, valuation, dividends and profitability.
Golub Capital BDC has a beta of 0.55, meaning that its share price is 45% less volatile than the S&P 500. Comparatively, Sixth Street Specialty Lending has a beta of 1.03, meaning that its share price is 3% more volatile than the S&P 500.
In the previous week, Sixth Street Specialty Lending had 4 more articles in the media than Golub Capital BDC. MarketBeat recorded 8 mentions for Sixth Street Specialty Lending and 4 mentions for Golub Capital BDC. Sixth Street Specialty Lending's average media sentiment score of 0.29 beat Golub Capital BDC's score of -0.78 indicating that Golub Capital BDC is being referred to more favorably in the media.
Golub Capital BDC has a net margin of 53.05% compared to Golub Capital BDC's net margin of 47.16%. Golub Capital BDC's return on equity of 13.74% beat Sixth Street Specialty Lending's return on equity.
42.4% of Golub Capital BDC shares are held by institutional investors. Comparatively, 70.3% of Sixth Street Specialty Lending shares are held by institutional investors. 2.7% of Golub Capital BDC shares are held by company insiders. Comparatively, 3.3% of Sixth Street Specialty Lending shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Golub Capital BDC currently has a consensus target price of $16.40, suggesting a potential downside of 1.03%. Sixth Street Specialty Lending has a consensus target price of $22.67, suggesting a potential upside of 2.98%. Given Golub Capital BDC's stronger consensus rating and higher possible upside, analysts clearly believe Sixth Street Specialty Lending is more favorable than Golub Capital BDC.
Golub Capital BDC has higher revenue and earnings than Sixth Street Specialty Lending. Golub Capital BDC is trading at a lower price-to-earnings ratio than Sixth Street Specialty Lending, indicating that it is currently the more affordable of the two stocks.
Golub Capital BDC pays an annual dividend of $1.56 per share and has a dividend yield of 9.4%. Sixth Street Specialty Lending pays an annual dividend of $1.84 per share and has a dividend yield of 8.4%. Golub Capital BDC pays out 76.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Sixth Street Specialty Lending pays out 74.2% of its earnings in the form of a dividend. Golub Capital BDC has raised its dividend for 4 consecutive years and Sixth Street Specialty Lending has raised its dividend for 1 consecutive years. Golub Capital BDC is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Sixth Street Specialty Lending received 80 more outperform votes than Golub Capital BDC when rated by MarketBeat users. Likewise, 66.32% of users gave Sixth Street Specialty Lending an outperform vote while only 56.50% of users gave Golub Capital BDC an outperform vote.
Summary
Sixth Street Specialty Lending beats Golub Capital BDC on 14 of the 21 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding TSLX and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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