Gladstone Capital (NASDAQ:GLAD – Get Free Report) and Hampshire Group (OTCMKTS:HAMP – Get Free Report) are both small-cap finance companies, but which is the better investment? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, dividends, valuation and analyst recommendations.
Institutional and Insider Ownership
10.7% of Gladstone Capital shares are owned by institutional investors. Comparatively, 13.5% of Hampshire Group shares are owned by institutional investors. 4.1% of Gladstone Capital shares are owned by company insiders. Comparatively, 44.4% of Hampshire Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Valuation & Earnings
This table compares Gladstone Capital and Hampshire Group”s top-line revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Gladstone Capital | $98.55 million | 6.32 | $94.72 million | $3.80 | 7.34 |
Hampshire Group | N/A | N/A | N/A | N/A | N/A |
Profitability
This table compares Gladstone Capital and Hampshire Group’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Gladstone Capital | 97.81% | 10.48% | 5.82% |
Hampshire Group | N/A | N/A | N/A |
Analyst Ratings
This is a breakdown of recent ratings for Gladstone Capital and Hampshire Group, as reported by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Gladstone Capital | 0 | 1 | 0 | 0 | 2.00 |
Hampshire Group | 0 | 0 | 0 | 0 | 0.00 |
Gladstone Capital presently has a consensus price target of $23.00, indicating a potential downside of 17.56%. Given Hampshire Group’s higher probable upside, analysts plainly believe Hampshire Group is more favorable than Gladstone Capital.
Summary
Gladstone Capital beats Hampshire Group on 5 of the 8 factors compared between the two stocks.
About Gladstone Capital
Gladstone Capital Corporation is a business development company specializing in lower middle market, growth capital, add on acquisitions, change of control, buy & build strategies, debt refinancing, debt investments in senior term loans, revolving loans, secured first and second lien 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, and refinancing existing debts. It targets small and medium-sized companies in United States. It is industry agnostic and seeks to invest in companies engaged in the business services, light and specialty manufacturing, niche industrial products and services, specialty consumer products and services, energy services, transportation and logistics, healthcare 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 that have between $20 million and $150 million in sales and EBITDA between $3 million and $25 million. It 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.
About Hampshire Group
Hampshire Group, Limited is a holding company. The Company is a provider of fashion apparel across a range of product categories, channels of distribution and price points. As a holding company, the Company operates through its subsidiaries, Hampshire Brands, Inc. (Hampshire Brands) and Hampshire International, LLC. Hampshire Brands designs and markets men’s sportswear to department stores, chain stores and mass market retailers under licensed brands. The Company offers a full tops assortment under the Dockers brand. Under its multi-year licensing agreement with Dockers for its men’s good category tops in the United States, the Company oversees the design, production, sales and distribution of the line to certain chain and department stores. The woven and knit line includes button down shirts, polos, fleece tops and t-shirts.
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