Prospect Capital (NASDAQ:PSEC) and Datable Technology (OTCMKTS:TTMZF) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, valuation, risk, earnings and dividends.
Prospect Capital pays an annual dividend of $0.72 per share and has a dividend yield of 10.8%. Datable Technology does not pay a dividend. Prospect Capital pays out 91.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Prospect Capital has increased its dividend for 7 consecutive years.
Prospect Capital has a beta of 0.61, suggesting that its share price is 39% less volatile than the S&P 500. Comparatively, Datable Technology has a beta of -18.68, suggesting that its share price is 1,968% less volatile than the S&P 500.
This table compares Prospect Capital and Datable Technology’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings & Valuation
This table compares Prospect Capital and Datable Technology’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Prospect Capital||$607.01 million||4.02||$299.86 million||$0.79||8.44|
Prospect Capital has higher revenue and earnings than Datable Technology.
This is a breakdown of recent ratings and price targets for Prospect Capital and Datable Technology, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Prospect Capital presently has a consensus target price of $5.50, indicating a potential downside of 17.54%. Given Prospect Capital’s higher possible upside, equities analysts clearly believe Prospect Capital is more favorable than Datable Technology.
Institutional and Insider Ownership
14.2% of Prospect Capital shares are held by institutional investors. 10.2% of Prospect Capital shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Prospect Capital beats Datable Technology on 11 of the 12 factors compared between the two stocks.
Prospect Capital Company Profile
Prospect Capital Corporation is a business development company. It specializes in middle market, mature, mezzanine finance, later stage, emerging growth, buyouts, recapitalizations, turnaround, growth capital, development, subordinated debt tranches of collateralized loan obligations, cash flow term loans, and bridge transactions. It also makes real estate investments particularly in multi-family residential real estate asset class. The fund makes secured debt, senior debt, unitranche debt, first-lien and second lien, private debt, mezzanine debt, and equity investments in private and microcap public businesses. It focuses on both primary origination and secondary loans/portfolios and invests in situations like debt financings for private equity sponsors, acquisitions, dividend recapitalizations, growth financings, bridge loans, cash flow term loans, real estate financings/investments. The fund typically invests across all industry sectors, with a particular expertise in the energy and industrial sectors. It invests in aerospace and defense, chemicals, conglomerate services, consumer services, ecological, electronics, financial services, machinery, manufacturing, media, pharmaceuticals, retail, software, specialty minerals, textiles and leather, transportation, oil and gas production, coal production, materials, industrials, consumer discretionary, information technology, utilities, pipeline, storage, power generation and distribution, renewable and clean energy, oilfield services, healthcare, food and beverage, education, business services, and other select sectors. It prefers to invest in the United States and Canada. The fund seeks to invest between $10 million to $500 million per transaction in companies with EBITDA between $5 million and $250 million, sales value between $25 million and $500 million, and enterprise value between $5 million and $1000 million. It fund also co-invests for larger deals. The fund seeks control acquisitions by providing multiple levels of the capital structure. The fund focuses on sole, agented, club, or syndicated deals.
Datable Technology Company Profile
Datable Technology Corporation, a technology company, provides consumer digital and social media engagement, data mining, and loyalty solutions primarily in Canada and the United States. The company offers Platform³, a Software as a Service mobile shopper marketing and messaging platform for consumer packaged goods companies and consumer brands. 3TL Technologies Corp. was founded in 2008 and is headquartered in Vancouver, Canada.
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