Unifi (NYSE:UFI – Get Rating) and Gladstone Capital (NASDAQ:GLAD – Get Rating) are both small-cap industrial products companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, analyst recommendations, valuation, earnings, institutional ownership, profitability and dividends.
Valuation and Earnings
This table compares Unifi and Gladstone Capital’s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Unifi | $690.05 million | 0.20 | $15.17 million | ($1.54) | -5.01 |
| Gladstone Capital | $30.47 million | 11.49 | $19.91 million | $0.48 | 19.48 |
Gladstone Capital has lower revenue, but higher earnings than Unifi. Unifi is trading at a lower price-to-earnings ratio than Gladstone Capital, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
65.7% of Unifi shares are held by institutional investors. Comparatively, 9.1% of Gladstone Capital shares are held by institutional investors. 12.9% of Unifi shares are held by company insiders. Comparatively, 5.0% of Gladstone Capital shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Volatility & Risk
Unifi has a beta of 0.88, meaning that its stock price is 12% less volatile than the S&P 500. Comparatively, Gladstone Capital has a beta of 1.31, meaning that its stock price is 31% more volatile than the S&P 500.
Profitability
This table compares Unifi and Gladstone Capital’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Unifi | -3.99% | -9.33% | -5.78% |
| Gladstone Capital | 24.71% | 10.13% | 5.05% |
Analyst Ratings
This is a breakdown of recent ratings and target prices for Unifi and Gladstone Capital, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Unifi | 0 | 0 | 1 | 0 | 3.00 |
| Gladstone Capital | 0 | 1 | 0 | 0 | 2.00 |
Summary
Gladstone Capital beats Unifi on 8 of the 13 factors compared between the two stocks.
About Unifi
(Get Rating)
Unifi, Inc. engages in the manufacture and sale of synthetic and recycled products made from polyester and nylon. It operates through the following segments: Polyester, Nylon, Brazil, and Asia. The Polyester segment sells polyester-based products to other yarn manufacturers, knitters, and weavers that produce yarn and fabric for the apparel, hosiery, home furnishings, automotive, industrial, and other end-use markets in U.S. and El Salvador. The Nylon segment offers nylon-based products to knitters and weavers that produce fabric for the apparel and hosiery markets in U.S. and Colombia. The Brazil and Asia segments comprises polyester-based products to knitters and weavers that produce fabric for the apparel, home furnishings, automotive, industrial, and other end-use markets principally in South America and Asia. The company was founded by George Allen Mebane IV in 1969 and is headquartered in Greensboro, NC.
About Gladstone Capital
(Get Rating)
Gladstone Capital is a specialty finance company that invests in debt securities consisting primarily of senior term loans, senior subordinated loans, and junior subordinated loans in small and medium sized companies, that meet certain criteria. The criteria can include some or all of the following: the potential for growth in cash flow, adequate assets for loan collateral, experienced management teams with significant ownership interest in the business, adequate capitalization, profitable operations based on the borrower’s cash flow, reasonable capitalization of the borrower and the potential to realize appreciation and gain liquidity in our equity position, if any.
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