AlTi Global (NASDAQ:ALTI – Get Free Report) and Prospect Capital (NASDAQ:PSEC – Get Free Report) are both small-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, earnings, risk, dividends, profitability, institutional ownership and valuation.
Valuation and Earnings
This table compares AlTi Global and Prospect Capital”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| AlTi Global | $277.28 million | 1.13 | -$119.70 million | ($0.64) | -3.14 |
| Prospect Capital | $639.45 million | 1.31 | $153.66 million | ($0.15) | -10.00 |
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.
Volatility and Risk
AlTi Global has a beta of 0.82, suggesting that its stock price is 18% less volatile than the S&P 500. Comparatively, Prospect Capital has a beta of 0.84, suggesting that its stock price is 16% less volatile than the S&P 500.
Profitability
This table compares AlTi Global and Prospect Capital’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| AlTi Global | -13.76% | -1.08% | -0.49% |
| Prospect Capital | 3.80% | 13.28% | 6.12% |
Analyst Ratings
This is a summary of recent ratings and target prices for AlTi Global and Prospect Capital, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| AlTi Global | 1 | 1 | 0 | 0 | 1.50 |
| Prospect Capital | 2 | 1 | 0 | 0 | 1.33 |
Prospect Capital has a consensus target price of $1.50, indicating a potential upside of 0.00%. Given Prospect Capital’s higher possible upside, analysts clearly believe Prospect Capital is more favorable than AlTi Global.
Institutional & Insider Ownership
3.6% of AlTi Global shares are held by institutional investors. Comparatively, 9.1% of Prospect Capital shares are held by institutional investors. 2.2% of AlTi Global shares are held by insiders. Comparatively, 25.9% of Prospect Capital shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Summary
Prospect Capital beats AlTi Global on 11 of the 13 factors compared between the two stocks.
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.
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.
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