Neostellar Capital (NASDAQ:NSLR) vs. Voya Financial (NYSE:VOYA) Head-To-Head Review

Voya Financial (NYSE:VOYA) and Neostellar Capital (NASDAQ:NSLR) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, dividends, risk, profitability, institutional ownership and earnings.

Dividends

Voya Financial pays an annual dividend of $1.88 per share and has a dividend yield of 1.8%. Neostellar Capital pays an annual dividend of $0.25 per share and has a dividend yield of 4.1%. Voya Financial pays out 30.2% of its earnings in the form of a dividend. Neostellar Capital pays out 8.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Voya Financial has raised its dividend for 6 consecutive years. Neostellar Capital is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares Voya Financial and Neostellar Capital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Voya Financial	7.75%	12.67%	0.45%
Neostellar Capital	5,128.31%	-11.78%	-9.57%

Institutional & Insider Ownership

96.1% of Voya Financial shares are held by institutional investors. Comparatively, 12.9% of Neostellar Capital shares are held by institutional investors. 1.6% of Voya Financial shares are held by company insiders. Comparatively, 8.3% of Neostellar Capital shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Risk & Volatility

Voya Financial has a beta of 0.85, meaning that its stock price is 15% less volatile than the S&P 500. Comparatively, Neostellar Capital has a beta of 1.49, meaning that its stock price is 49% more volatile than the S&P 500.

Earnings and Valuation

This table compares Voya Financial and Neostellar Capital”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Voya Financial	$8.19 billion	1.13	$654.00 million	$6.22	16.67
Neostellar Capital	$127.97 million	1.27	$48.81 million	$2.95	2.08

Voya Financial has higher revenue and earnings than Neostellar Capital. Neostellar Capital is trading at a lower price-to-earnings ratio than Voya Financial, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Voya Financial and Neostellar Capital, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Voya Financial	1	4	7	1	2.62
Neostellar Capital	0	1	4	1	3.00

Voya Financial currently has a consensus price target of $103.69, suggesting a potential upside of 0.00%. Neostellar Capital has a consensus price target of $12.75, suggesting a potential upside of 107.32%. Given Neostellar Capital’s stronger consensus rating and higher possible upside, analysts plainly believe Neostellar Capital is more favorable than Voya Financial.

Summary

Voya Financial beats Neostellar Capital on 9 of the 17 factors compared between the two stocks.

About Voya Financial

Voya Financial, Inc. is a U.S.-based financial services company focused on workplace benefits, retirement plans and investment management. It serves employers, plan sponsors, institutions and individuals, primarily in the United States. The company provides workplace retirement savings plans and related services, along with employee benefits such as group life, disability and supplemental health coverage. Through its investment management business, Voya offers investment strategies and services to institutional and individual clients.

About Neostellar Capital

SuRo Capital Corp. is a business development company. The firm seeks to invest in growing, late stage, venture capital-backed private companies. SuRo Capital Corp. was founded in 2010 and is based in San Francisco, California.