Prospect Capital (NASDAQ:PSEC) vs. C-Bond Systems (NASDAQ:CBNT) Head-To-Head Analysis

Prospect Capital (NASDAQ:PSEC) and C-Bond Systems (OTCMKTS:CBNT) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, institutional ownership, dividends, valuation, earnings, profitability and analyst recommendations.

Earnings and Valuation

This table compares Prospect Capital and C-Bond Systems’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Prospect Capital $703.77 million 2.87 $144.49 million $0.85 6.44
C-Bond Systems $600,000.00 2.24 -$10.96 million ($0.08) -0.12

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

Insider and Institutional Ownership

11.4% of Prospect Capital shares are held by institutional investors. 25.8% of Prospect Capital shares are held by insiders. Comparatively, 22.2% of C-Bond Systems shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Prospect Capital and C-Bond Systems’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Prospect Capital -21.78% 8.74% 5.03%
C-Bond Systems N/A N/A N/A

Analyst Ratings

This is a breakdown of current ratings for Prospect Capital and C-Bond Systems, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Prospect Capital 1 0 0 0 1.00
C-Bond Systems 0 0 0 0 N/A

Summary

Prospect Capital beats C-Bond Systems on 9 of the 10 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 C-Bond Systems

C-Bond Systems, Inc. operates as a material development company. Its products include C-Bond NanoShield, a patented nanotechnology windshield glass strengthening and hydrophobic all-in-one performance system to improve windshield safety and performance; C-Bond I, a patented non-toxic water-based nanotechnology solution to enhance the strength of glass and improve the performance properties of window film-to-glass products; and C-Bond BRS, a ballistic resistant film system that enhances the structural integrity of glass. The company sells its products in the United States. C-Bond Systems, Inc. was founded in 2013 and is headquartered in Houston, Texas.

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