Prospect Capital (NASDAQ:PSEC – Get Free Report) and AlTi Global (NASDAQ:ALTI – Get Free Report) are both small-cap finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, valuation, analyst recommendations, dividends, earnings, risk and profitability.
Risk & Volatility
Prospect Capital has a beta of 0.84, meaning that its share price is 16% less volatile than the S&P 500. Comparatively, AlTi Global has a beta of 0.82, meaning that its share price is 18% less volatile than the S&P 500.
Institutional & Insider Ownership
9.1% of Prospect Capital shares are held by institutional investors. Comparatively, 3.6% of AlTi Global shares are held by institutional investors. 25.9% of Prospect Capital shares are held by insiders. Comparatively, 2.2% of AlTi Global shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Earnings and Valuation
This table compares Prospect Capital and AlTi Global”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Prospect Capital | $639.45 million | 1.27 | $153.66 million | ($0.15) | -9.73 |
| AlTi Global | $254.96 million | 0.97 | -$119.70 million | ($0.64) | -2.47 |
Prospect Capital has higher revenue and earnings than AlTi Global. Prospect Capital is trading at a lower price-to-earnings ratio than AlTi Global, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Prospect Capital and AlTi Global’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Prospect Capital | 3.80% | 13.28% | 6.12% |
| AlTi Global | -13.76% | -1.08% | -0.49% |
Analyst Ratings
This is a breakdown of current ratings and recommmendations for Prospect Capital and AlTi Global, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Prospect Capital | 2 | 1 | 0 | 0 | 1.33 |
| AlTi Global | 1 | 1 | 0 | 0 | 1.50 |
Prospect Capital currently has a consensus target price of $1.50, suggesting a potential upside of 2.74%. Given Prospect Capital’s higher probable upside, equities research analysts plainly believe Prospect Capital is more favorable than AlTi Global.
Summary
Prospect Capital beats AlTi Global on 11 of the 13 factors compared between the two stocks.
About Prospect Capital
Prospect Capital Corporation is a business development company that provides financing to middle-market businesses. Its investments include senior and subordinated debt, structured finance, and equity securities. The company works with businesses seeking capital for purposes such as growth, acquisitions, recapitalizations, and refinancing. Its portfolio spans a range of industries, with investments primarily in companies in the United States. Founded in 2004, Prospect Capital is externally managed by Prospect Capital Management L.P. and is headquartered in New York City.
About AlTi Global
AlTi Global, Inc. is a global wealth and asset management firm serving high-net-worth individuals and families, as well as foundations, endowments and other institutions. Its services include investment management, financial and wealth planning, family-office support and fiduciary services. The firm also provides access to alternative investments and offers impact-investing services. Its work is intended to address clients’ investment, planning and broader wealth-management needs. AlTi Global was formed in 2023 through the combination of Tiedemann Group and Alvarium Investments.
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