Gladstone Investment Corporation (GAINM) and Wells Fargo Advantage Utilities and High Income Fund (NYSE:ERH) Comparison side by side

Gladstone Investment Corporation (NASDAQ:GAINM) and Wells Fargo Advantage Utilities and High Income Fund (NYSE:ERH), both competing one another are Asset Management companies. We will contrast their analyst recommendations, profitability, risk, dividends, institutional ownership, earnings and valuation.

Valuation & Earnings

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Gladstone Investment Corporation 25 6.09 N/A 2.49 10.27
Wells Fargo Advantage Utilities and High Income Fund 13 13.42 N/A 1.22 11.02

In table 1 we can see Gladstone Investment Corporation and Wells Fargo Advantage Utilities and High Income Fund’s gross revenue, earnings per share (EPS) and valuation. Wells Fargo Advantage Utilities and High Income Fund appears to has lower revenue and earnings than Gladstone Investment Corporation. When company has lower price-to-earnings means it is more affordable than its counterpart presently. Gladstone Investment Corporation’s shares have been trading at lower price-to-earnings ratio which means it is presently more affordable than Wells Fargo Advantage Utilities and High Income Fund.

Profitability

Table 2 hightlights the return on assets, return on equity and net margins of the two companies.

Net Margins Return on Equity Return on Assets
Gladstone Investment Corporation 0.00% 0% 0%
Wells Fargo Advantage Utilities and High Income Fund 0.00% 0% 0%

Insider and Institutional Ownership

Institutional investors owned 4.31% of Gladstone Investment Corporation shares and 4.1% of Wells Fargo Advantage Utilities and High Income Fund shares. Comparatively, insiders own roughly 0.06% of Wells Fargo Advantage Utilities and High Income Fund’s shares.

Performance

Here are the Weekly, Monthly, Quarterly, Half Yearly, Yearly and YTD Performance of both pretenders.

Performance (W) Performance (M) Performance (Q) Performance (HY) Performance (Y) Performance (YTD)
Gladstone Investment Corporation -0.41% 0.45% 0.53% 2.22% 0.97% 2.14%
Wells Fargo Advantage Utilities and High Income Fund 2.14% 3.8% 3.08% 9.16% 7.21% 19.87%

For the past year Gladstone Investment Corporation’s stock price has smaller growth than Wells Fargo Advantage Utilities and High Income Fund.

Gladstone Investment Corporation is a private equity fund specializing in lower middle market, acquisitions, mature stage, buyouts; recapitalizations; refinancing existing debt; senior debt securities such as senior loans, senior term loans, lines of credit, and senior notes; senior subordinated debt securities such as senior subordinated loans and senior subordinated notes; junior subordinated debt securities such as subordinated notes and mezzanine loans; limited liability company interests, and warrants or options. The fund does not invest in start-ups. The fund seek to invest in manufacturing, consumer products and business services/ distribution sector. It seeks to invest in small and mid-sized companies based in the United States. The fund prefers to make debt investments between $5 million and $30 million and equity investments between $10 million and $40 million in companies. The fund seeks to invest in companies with sales between $20 million and $100 million. The fund invest in companies with EBITDA from $3 million to $20 million. It seeks minority equity ownership and prefers to hold a board seat in its portfolio companies. It also prefers to take majority stake in its portfolio companies. The fund typically holds its investments for seven years and exits via sale or recapitalization, initial public offering, or sale to third party.

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