RAND vs. ARCC, GBDC, PSEC, TSLX, NMFC, CSWC, PFLT, GAIN, PNNT, and TPVG
Should you be buying Rand Capital stock or one of its competitors? The main competitors of Rand Capital include Ares Capital (ARCC), Golub Capital BDC (GBDC), Prospect Capital (PSEC), Sixth Street Specialty Lending (TSLX), New Mountain Finance (NMFC), Capital Southwest (CSWC), PennantPark Floating Rate Capital (PFLT), Gladstone Investment (GAIN), PennantPark Investment (PNNT), and TriplePoint Venture Growth BDC (TPVG). These companies are all part of the "investors, not elsewhere classified" industry.
Rand Capital (NASDAQ:RAND) and Ares Capital (NASDAQ:ARCC) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, community ranking, valuation, media sentiment, analyst recommendations, profitability, dividends, institutional ownership and risk.
Rand Capital has a net margin of 76.21% compared to Ares Capital's net margin of 62.77%. Ares Capital's return on equity of 12.37% beat Rand Capital's return on equity.
27.4% of Ares Capital shares are owned by institutional investors. 68.2% of Rand Capital shares are owned by company insiders. Comparatively, 0.6% of Ares Capital shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Rand Capital has a beta of 0.49, suggesting that its share price is 51% less volatile than the S&P 500. Comparatively, Ares Capital has a beta of 0.99, suggesting that its share price is 1% less volatile than the S&P 500.
Ares Capital received 287 more outperform votes than Rand Capital when rated by MarketBeat users. Likewise, 62.56% of users gave Ares Capital an outperform vote while only 61.66% of users gave Rand Capital an outperform vote.
Ares Capital has a consensus target price of $21.50, suggesting a potential downside of 0.32%. Given Ares Capital's higher probable upside, analysts clearly believe Ares Capital is more favorable than Rand Capital.
Rand Capital pays an annual dividend of $1.16 per share and has a dividend yield of 6.8%. Ares Capital pays an annual dividend of $1.92 per share and has a dividend yield of 8.9%. Rand Capital pays out 52.0% of its earnings in the form of a dividend. Ares Capital pays out 65.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
Ares Capital has higher revenue and earnings than Rand Capital. Ares Capital is trading at a lower price-to-earnings ratio than Rand Capital, indicating that it is currently the more affordable of the two stocks.
In the previous week, Ares Capital had 3 more articles in the media than Rand Capital. MarketBeat recorded 10 mentions for Ares Capital and 7 mentions for Rand Capital. Ares Capital's average media sentiment score of 1.01 beat Rand Capital's score of 0.36 indicating that Ares Capital is being referred to more favorably in the news media.
Summary
Ares Capital beats Rand Capital on 14 of the 18 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding RAND 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 NASDAQ 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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