Alcentra Capital (NASDAQ:ABDC) versus Value Line (NASDAQ:VALU) Critical Analysis
Alcentra Capital (NASDAQ:ABDC) and Value Line (NASDAQ:VALU) are both small-cap finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, valuation, dividends, risk, profitability, analyst recommendations and institutional ownership.
This table compares Alcentra Capital and Value Line’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of recent ratings and recommmendations for Alcentra Capital and Value Line, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Alcentra Capital pays an annual dividend of $0.72 per share and has a dividend yield of 8.1%. Value Line pays an annual dividend of $0.80 per share and has a dividend yield of 2.4%. Alcentra Capital pays out 71.3% of its earnings in the form of a dividend. Value Line has increased its dividend for 5 consecutive years.
Institutional and Insider Ownership
37.5% of Alcentra Capital shares are owned by institutional investors. Comparatively, 7.7% of Value Line shares are owned by institutional investors. 0.6% of Alcentra Capital shares are owned by insiders. Comparatively, 0.0% of Value Line shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Earnings and Valuation
This table compares Alcentra Capital and Value Line’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Alcentra Capital||$28.97 million||3.96||$5.52 million||$1.01||8.81|
|Value Line||$36.26 million||8.93||$11.15 million||N/A||N/A|
Value Line has higher revenue and earnings than Alcentra Capital.
Volatility & Risk
Alcentra Capital has a beta of 0.57, meaning that its share price is 43% less volatile than the S&P 500. Comparatively, Value Line has a beta of 0.38, meaning that its share price is 62% less volatile than the S&P 500.
Value Line beats Alcentra Capital on 9 of the 13 factors compared between the two stocks.
About Alcentra Capital
Alcentra Capital Corporation is a business development company specializing in investments in lower middle-market companies. The fund seeks to invest in healthcare, business services, defense, government services, telecom and technology, media, infrastructure maintenance and logistics, and oil and gas services sector. It focuses on investment opportunities headquartered in the United States. The fund seeks to invest $5 million to $15 million per transaction in companies with EBITDA between $5 million to $15 million and revenues of between $10 million and $100 million. It invests in the form of subordinated debt and, to a lesser extent, senior debt and minority equity investments.
About Value Line
Value Line, Inc., together with its subsidiaries, produces and sells investment periodicals and related publications primarily in the United States. Its investment periodicals and related publications cover a range of investments, including stocks, mutual funds, exchange traded funds (ETFs), options, and convertible securities. The company offers research services, such as The Value Line Investment Survey, The Value Line Investment Survey – Small and Mid-Cap, The Value Line 600, and The Value Line Fund Advisor Plus, which provide statistical and text coverage of various investment securities, with an emphasis placed on its proprietary research, analysis, and statistical ranks. It also provides niche newsletters comprising Value Line Select, Value Line Select: Dividend Income & Growth, Value Line Select: ETFs, and The Value Line Special Situations Service that offer information on a less comprehensive basis for securities that are of particular interest to subscribers; digital versions of its products through its Website, valueline.com; and investment analysis software, such as The Value Line Investment Analyzer, which includes data sorting and filtering tools. In addition, the company offers current and historical financial databases comprising DataFile, estimates and projections, convertibles, and mutual funds through online; and copyright data products, which include unit investment trusts, variable annuities, managed accounts, and EFTs. Further, it places advertising on behalf of the company's publications; and provides subscription fulfillment and subscriber relation services. The company serves individual and professional investors, as well as institutions, including municipal and university libraries, and investment firms. Value Line, Inc. was founded in 1931 and is headquartered in New York, New York. Value Line, Inc. is a subsidiary of Arnold Bernhard & Co, Inc.
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