ALCENTRA Cap Co/SH (NASDAQ: VCTR) and Victory Capital (NASDAQ:VCTR) are both small-cap finance companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, risk, earnings, profitability, dividends, valuation and institutional ownership.
This table compares ALCENTRA Cap Co/SH and Victory Capital’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|ALCENTRA Cap Co/SH||-43.78%||10.10%||5.52%|
Institutional and Insider Ownership
35.3% of ALCENTRA Cap Co/SH shares are owned by institutional investors. Comparatively, 15.9% of Victory Capital shares are owned by institutional investors. 0.6% of ALCENTRA Cap Co/SH shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
ALCENTRA Cap Co/SH pays an annual dividend of $0.72 per share and has a dividend yield of 11.3%. Victory Capital does not pay a dividend. ALCENTRA Cap Co/SH pays out 54.5% of its earnings in the form of a dividend.
This is a breakdown of recent ratings and price targets for ALCENTRA Cap Co/SH and Victory Capital, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|ALCENTRA Cap Co/SH||1||3||0||0||1.75|
ALCENTRA Cap Co/SH presently has a consensus price target of $7.00, suggesting a potential upside of 9.89%. Victory Capital has a consensus price target of $13.88, suggesting a potential upside of 38.75%. Given Victory Capital’s stronger consensus rating and higher possible upside, analysts clearly believe Victory Capital is more favorable than ALCENTRA Cap Co/SH.
Earnings & Valuation
This table compares ALCENTRA Cap Co/SH and Victory Capital’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|ALCENTRA Cap Co/SH||$33.35 million||2.58||-$19.10 million||$1.32||4.83|
|Victory Capital||$409.63 million||1.66||$25.82 million||$1.25||8.00|
Victory Capital has higher revenue and earnings than ALCENTRA Cap Co/SH. ALCENTRA Cap Co/SH is trading at a lower price-to-earnings ratio than Victory Capital, indicating that it is currently the more affordable of the two stocks.
Victory Capital beats ALCENTRA Cap Co/SH on 8 of the 15 factors compared between the two stocks.
About ALCENTRA Cap Co/SH
Alcentra Capital Corporation is a specialty finance company that operates as a non-diversified, closed-end management investment company. The Company operates as a business development company and a regulated investment company. It provides customized debt and equity financing solutions to lower middle-market companies, which are companies having annual earnings, before interest, taxes, depreciation and amortization of between $5 million and $15 million, and/or revenues of between $10 million and $100 million. Its investments range in size from $5 million to $15 million. Its investment objective is to generate both current income and capital appreciation primarily by making direct investments in lower middle-market companies in the form of senior debt, unitranche, second lien, subordinated debt and, to a lesser extent, senior debt and minority equity investments. Its investment focus is to make loans to, and selected equity investments in, privately-held lower-middle-market companies.
About Victory Capital
Victory Capital Holdings, Inc., together with its subsidiaries, operates as an independent investment management company in the United States. It offers investment advisory, fund administration, and distribution services through broker-dealers, retirement platforms, and registered investment advisor networks. As of September 30, 2017, its franchises and solutions platform managed a set of 70 investment strategies for a range of institutional and retail clients. The company was founded in 2013 and is based in Brooklyn, Ohio.
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