Jupiter Fund Management (OTCMKTS:JFHHF) versus Prospect Capital (NASDAQ:PSEC) Head-To-Head Analysis

Prospect Capital (NASDAQ:PSEC) and Jupiter Fund Management (OTCMKTS:JFHHF) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, dividends, earnings, risk, institutional ownership, profitability and analyst recommendations.

Profitability

This table compares Prospect Capital and Jupiter Fund Management’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Prospect Capital	-39.56%	11.91%	5.39%
Jupiter Fund Management	N/A	N/A	N/A

Analyst Ratings

This is a summary of recent ratings and target prices for Prospect Capital and Jupiter Fund Management, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Prospect Capital	2	0	0	0	1.00
Jupiter Fund Management	1	2	0	0	1.67

Prospect Capital presently has a consensus price target of $2.50, indicating a potential downside of 17.76%. Given Prospect Capital’s higher possible upside, research analysts clearly believe Prospect Capital is more favorable than Jupiter Fund Management.

Volatility & Risk

Prospect Capital has a beta of 0.9, indicating that its share price is 10% less volatile than the S&P 500. Comparatively, Jupiter Fund Management has a beta of 0.41, indicating that its share price is 59% less volatile than the S&P 500.

Earnings and Valuation

This table compares Prospect Capital and Jupiter Fund Management”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Prospect Capital	$719.44 million	2.04	-$469.92 million	($0.81)	-3.75
Jupiter Fund Management	N/A	N/A	N/A	N/A	N/A

Jupiter Fund Management has lower revenue, but higher earnings than Prospect Capital.

Insider and Institutional Ownership

9.1% of Prospect Capital shares are held by institutional investors. 28.0% 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 Jupiter Fund Management on 7 of the 9 factors compared between the two stocks.

About Prospect Capital

Prospect Capital Corporation is a business development company. It specializes in middle market, mature, mezzanine finance, later stage, emerging growth, leveraged buyouts, refinancing, acquisitions, recapitalizations, turnaround, growth capital, development, capital expenditures and subordinated debt tranches of collateralized loan obligations, cash flow term loans, market place lending and bridge transactions. It also makes real estate investments particularly in multi-family residential real estate asset class. The fund makes secured debt, senior debt, senior and secured term loans, unitranche debt, first-lien and second lien, private debt, private equity, mezzanine debt, and equity investments in private and microcap public businesses. It focuses on both primary origination and secondary loans/portfolios and invests in situations like debt financings for private equity sponsors, acquisitions, dividend recapitalizations, growth financings, bridge loans, cash flow term loans, real estate financings/investments. It also focuses on investing in small-sized and medium-sized private companies rather than large public companies. The fund typically invests across all industry sectors, with a particular expertise in the energy and industrial sectors. It invests in aerospace and defense, chemicals, conglomerate services, consumer services, ecological, electronics, financial services, machinery, manufacturing, media, pharmaceuticals, retail, software, specialty minerals, textiles and leather, transportation, oil and gas production, coal production, materials, industrials, consumer discretionary, information technology, utilities, pipeline, storage, power generation and distribution, renewable and clean energy, oilfield services, healthcare, food and beverage, education, business services, and other select sectors. It prefers to invest in the United States and Canada. The fund seeks to invest between $10 million to $500 million per transaction in companies with EBITDA between $5 million and $150 million, sales value between $25 million and $500 million, and enterprise value between $5 million and $1000 million. It fund also co-invests for larger deals. The fund seeks control acquisitions by providing multiple levels of the capital structure. The fund focuses on sole, agented, club, or syndicated deals.

About Jupiter Fund Management

Jupiter Fund Management Plc is a publicly owned investment manager. The firm manages mutual funds, hedge funds, client focused portfolios, and multi-manager products for its clients. It invests in the public equity markets across U.K., Europe and global emerging markets. The firm also invests in fixed income markets, fund of funds products, hedge funds, and absolute return funds. Jupiter Fund Management Plc was founded in 1985 and is based in London, United Kingdom.