Tekla Life Sciences Investors (New York Stock Exchange: HQL – Get a rating) and Gladstone Capital (NASDAQ:GLAD – Get a rating) are both small cap finance companies, but which is the better stock? We’ll compare the two companies based on their risk strength, dividends, valuation, analyst recommendations, earnings, profitability, and institutional ownership.
Institutional and Insider Ownership
20.7% of Tekla Life Sciences Investors shares are held by institutional investors. By comparison, 10.4% of Gladstone Capital’s shares are held by institutional investors. 10.1% of Tekla Life Sciences Investors shares are held by insiders. By comparison, 5.2% of Gladstone Capital shares are held by insiders. Strong institutional ownership indicates that hedge funds, large fund managers, and endowments believe a stock is poised for long-term growth.
Risk and Volatility
Tekla Life Sciences Investors has a beta of 0.88, indicating that its stock price is 12% less volatile than the S&P 500. In comparison, Gladstone Capital has a beta of 1.29, indicating that its stock price is its stock is 29% more volatile than the S&P 500.
This is a summary of recent ratings from Tekla Life Sciences Investors and Gladstone Capital, as provided by MarketBeat.com.
|Sales Ratings||Hold odds||Buy reviews||Strong buy odds||Rating|
|Tekla Life Sciences Investors||0||0||0||0||N / A|
Gladstone Capital has a consensus target price of $10.00, suggesting a potential downside of 8.93%. Given Gladstone Capital’s likely higher upside, analysts clearly believe that Gladstone Capital is more favorable than Tekla Life Sciences Investors.
This table compares the net margins, return on equity and return on assets of Tekla Life Sciences Investors and Gladstone Capital.
|Net margins||Return on equity||return on assets|
|Tekla Life Sciences Investors||N / A||N / A||N / A|
Tekla Life Sciences Investors pays an annual dividend of US$1.59 per share and has a dividend yield of 11.5%. Gladstone Capital pays an annual dividend of $0.81 per share and has a dividend yield of 7.4%. Gladstone Capital pays 38.6% of its profits as a dividend. Gladstone Capital has increased its dividend for 1 consecutive years.
Valuation and benefits
This table compares the revenue, earnings per share (EPS) and valuation of Tekla Life Sciences Investors and Gladstone Capital.
|Gross revenue||Price/sales ratio||Net revenue||Earnings per share||Price/earnings ratio|
|Tekla Life Sciences Investors||N / A||N / A||N / A||N / A||N / A|
|Gladstone Capital||$53.79 million||7.00||$84.30 million||$2.10||5.23|
Gladstone Capital has higher revenues and profits than Tekla Life Sciences Investors.
Gladstone Capital beats Tekla Life Sciences Investors on 7 out of 11 factors compared between the two stocks.
Tekla Life Sciences Investors Company Profile (Get a rating)
Tekla Life Sciences Investors is a closed-end equity mutual fund launched and managed by Tekla Capital Management LLC. The fund invests in stock markets around the world. It seeks to invest in stocks of companies operating in the life sciences sector, including biotechnology, pharmaceuticals, diagnostics, managed healthcare, medical equipment, hospitals, technologies and services health information, devices and supplies, as well as in the agriculture and environmental management industries. The fund invests primarily in growth stocks of small capitalization companies. It uses fundamental analysis with an emphasis on factors such as service or product market position, business management experience, technology expertise, and the ability to either generate funds internally to finance growth, or to obtain external sources of capital to create its portfolio. The fund compares the performance of its portfolio to the NASDAQ Biotech Index and the S&P 500 Index. It was formerly known as the H&Q Life Sciences Investors Fund. Tekla Life Sciences Investors was incorporated on February 20, 1992 and is domiciled in the United States.
Gladstone Capital Company Profile (Get a rating)
Gladstone Capital Corporation is a business development firm specializing in lower middle market, growth capital, add-on acquisitions, change of control, buy and build strategies, debt refinancing, equity investments first lien term loans, revolving loans, first and second lien secured term loans. , senior subordinated loans, unitranche loans, junior subordinated loans and mezzanine loans and equity investments in the form of common stock, preferred stock, limited liability company interests or warrants. It operates as a business development company. The fund also makes private equity investments in acquisitions, buyouts and recapitalizations, as well as in the refinancing of existing debt. It targets small and medium businesses in the United States. It is industry independent and seeks to invest in companies active in business services, light and specialty manufacturing, niche industrial products and services, specialty consumer products and services, energy services, transportation and logistics, health and education services, specialty chemicals, media and communications and aerospace and defense. The fund seeks to invest between $7 million and $30 million in companies with revenue between $20 million and $150 million and an EBITDA between $3 million and $25 million. He prefers to acquire minority stakes. It seeks to exit its investments through strategic acquisitions by other industry participants or financial buyers, initial public offerings of common stock or other capital market transactions.
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