Gladstone Capital (NASDAQ:GLAD – Get Rating) and Uniroyal Global Engineered Products (OTCMKTS:UNIR – Get Rating) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, dividends, risk, earnings, analyst recommendations, valuation and profitability.
Institutional and Insider Ownership
9.1% of Gladstone Capital shares are owned by institutional investors. 5.0% of Gladstone Capital shares are owned by company insiders. Comparatively, 59.9% of Uniroyal Global Engineered Products shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Risk and Volatility
Gladstone Capital has a beta of 1.31, indicating that its share price is 31% more volatile than the S&P 500. Comparatively, Uniroyal Global Engineered Products has a beta of 0.56, indicating that its share price is 44% less volatile than the S&P 500.
Valuation & Earnings
This table compares Gladstone Capital and Uniroyal Global Engineered Products’ gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Gladstone Capital | $63.15 million | 5.58 | $19.91 million | $0.48 | 19.63 |
| Uniroyal Global Engineered Products | $71.71 million | N/A | -$1.70 million | $0.39 | 0.54 |
Gladstone Capital has higher earnings, but lower revenue than Uniroyal Global Engineered Products. Uniroyal Global Engineered Products is trading at a lower price-to-earnings ratio than Gladstone Capital, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Gladstone Capital and Uniroyal Global Engineered Products’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Gladstone Capital | 24.71% | 10.13% | 5.05% |
| Uniroyal Global Engineered Products | N/A | N/A | N/A |
Analyst Ratings
This is a breakdown of recent recommendations for Gladstone Capital and Uniroyal Global Engineered Products, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Gladstone Capital | 0 | 1 | 0 | 0 | 2.00 |
| Uniroyal Global Engineered Products | 0 | 0 | 0 | 0 | N/A |
Summary
Gladstone Capital beats Uniroyal Global Engineered Products on 8 of the 10 factors compared between the two stocks.
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.
About Uniroyal Global Engineered Products
(Get Rating)
Uniroyal Global Engineered Products, Inc. engages in the manufacture and sale of vinyl coated fabrics. The firm specializes in branded coated fabrics, automotive and transportation interior as well as calendered sheeting. It operates through the following brands: Naugahyde, BeautyGard, Flameblocker, Spirit Millennium, Ambla, Amblon, Velbex, Cirroflex, Plastolene and Vynide. The company was founded on July 9, 1998 and is headquartered in Sarasota, FL.
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