Putnam Managed Municipal Income Trust (NYSE:PMM) and Gladstone Capital (NASDAQ:GLAD) are both small-cap finance companies, but which is the better business? We will compare the two companies based on the strength of their profitability, valuation, dividends, earnings, analyst recommendations, institutional ownership and risk.
Insider and Institutional Ownership
11.5% of Putnam Managed Municipal Income Trust shares are owned by institutional investors. Comparatively, 12.0% of Gladstone Capital shares are owned by institutional investors. 5.9% of Gladstone Capital shares are owned 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.
This table compares Putnam Managed Municipal Income Trust and Gladstone Capital’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Putnam Managed Municipal Income Trust||N/A||N/A||N/A|
Putnam Managed Municipal Income Trust pays an annual dividend of $0.37 per share and has a dividend yield of 5.6%. Gladstone Capital pays an annual dividend of $0.84 per share and has a dividend yield of 9.0%. Gladstone Capital pays out 100.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
This is a breakdown of current recommendations for Putnam Managed Municipal Income Trust and Gladstone Capital, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Putnam Managed Municipal Income Trust||0||0||0||0||N/A|
Gladstone Capital has a consensus price target of $7.00, suggesting a potential downside of 24.89%. Given Gladstone Capital’s higher probable upside, analysts clearly believe Gladstone Capital is more favorable than Putnam Managed Municipal Income Trust.
Valuation and Earnings
This table compares Putnam Managed Municipal Income Trust and Gladstone Capital’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Putnam Managed Municipal Income Trust||N/A||N/A||N/A||N/A||N/A|
|Gladstone Capital||$39.23 million||6.60||$17.18 million||$0.84||11.10|
Gladstone Capital has higher revenue and earnings than Putnam Managed Municipal Income Trust.
Volatility & Risk
Putnam Managed Municipal Income Trust has a beta of -0.02, indicating that its stock price is 102% less volatile than the S&P 500. Comparatively, Gladstone Capital has a beta of 1.03, indicating that its stock price is 3% more volatile than the S&P 500.
Gladstone Capital beats Putnam Managed Municipal Income Trust on 10 of the 11 factors compared between the two stocks.
Putnam Managed Municipal Income Trust Company Profile
There is no company description available for Putnam Managed Municipal Income Trust.
Gladstone Capital Company Profile
Gladstone Capital Corporation is a business development company specializing in debt investments in senior loans, second lien loans, senior subordinated loans, junior subordinated loans, and mezzanine loans and equity investments in the form of common stock, preferred stock, limited liability company interests, or warrants. 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 invests 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. It prefers to acquire minority stakes and also prefers to take minority stake in its portfolio companies. 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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