Gladstone Capital (NASDAQ:GLAD) and AlTi Global (NASDAQ:ALTI) Head to Head Survey

AlTi Global (NASDAQ:ALTI) and Gladstone Capital (NASDAQ:GLAD) are both small-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, institutional ownership, earnings, dividends, risk and analyst recommendations.

Risk & Volatility

AlTi Global has a beta of 0.72, suggesting that its stock price is 28% less volatile than the S&P 500. Comparatively, Gladstone Capital has a beta of 0.93, suggesting that its stock price is 7% less volatile than the S&P 500.

Profitability

This table compares AlTi Global and Gladstone Capital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AlTi Global	-40.86%	-1.61%	-0.74%
Gladstone Capital	50.48%	9.67%	5.00%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for AlTi Global and Gladstone Capital, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AlTi Global	2	0	0	0	1.00
Gladstone Capital	0	3	2	0	2.40

Gladstone Capital has a consensus price target of $21.67, indicating a potential upside of 7.74%. Given Gladstone Capital’s stronger consensus rating and higher probable upside, analysts plainly believe Gladstone Capital is more favorable than AlTi Global.

Earnings & Valuation

This table compares AlTi Global and Gladstone Capital”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AlTi Global	$254.96 million	2.35	-$119.70 million	($1.39)	-2.76
Gladstone Capital	$89.12 million	5.10	$58.11 million	$2.06	9.76

Gladstone Capital has lower revenue, but higher earnings than AlTi Global. AlTi Global is trading at a lower price-to-earnings ratio than Gladstone Capital, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

3.6% of AlTi Global shares are held by institutional investors. Comparatively, 10.7% of Gladstone Capital shares are held by institutional investors. 2.2% of AlTi Global shares are held by company insiders. Comparatively, 3.8% of Gladstone Capital shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Gladstone Capital beats AlTi Global on 13 of the 14 factors compared between the two stocks.

About AlTi Global

AlTi Global, Inc. provides wealth and asset management services individuals, families, foundations, and institutions in the United States, the United Kingdom, and internationally. It operates through two segments, Wealth Management and Strategic Alternatives. The company offers discretionary investment management, non-discretionary investment advisory, and investment management and advisory services. It also provides trust and administration services, such as entity formation and management; creating or modifying trust instruments and administrative practices to meet beneficiary needs; corporate, trustee-executor, and fiduciary services; provision of directors and company secretarial services; administering entity ownership of intellectual property rights; advisory and administration services in connection with investments in marine and aviation assets; and administering entity ownership of fine art and collectibles. In addition, the company offers family office services comprising bookkeeping and back office services, private foundation management and grant making, oversight of trust administration, financial tracking and reporting, cash flow management and bill pay, and other financial services, as well as clients estate and wealth planning, family governance and education, and philanthropic and strategic services. It also provides ancillary fund management services, including investments, financial planning and strategy, sales and marketing, and back and middle office infrastructure and administration. The company offers strategic advisory, corporate advisory, brokerage, and placement agency services; structures, arranges, and provides investors with co-investment opportunities in various alternative assets; manages and advises public and private investment funds, as well as alternatives platform. The company was formerly known as Alvarium Tiedemann Holdings, Inc. and changed its name to AlTi Global, Inc. in April 2023. The company is based in New York, New York.

About Gladstone Capital

Gladstone Capital Corporation is a business development company specializing in lower middle market, growth capital, add on acquisitions, change of control, buy & build strategies, debt refinancing, debt investments in senior term loans, revolving loans, secured first and second lien term loans, senior subordinated loans, unitranche loans, junior subordinated loans, and mezzanine loans and equity investments in the form of common stock, preferred stock, limited liability company interests, or warrants. It operates as a business development company. The fund also makes private equity investments in acquisitions, buyouts and recapitalizations, and refinancing existing debts. It targets small and medium-sized companies in United States. It is industry agnostic and seeks to invest in companies engaged in the business services, light and specialty manufacturing, niche industrial products and services, specialty consumer products and services, energy services, transportation and logistics, healthcare and education services, specialty chemicals, media and communications and aerospace and defense. The fund seeks to invest between $7 million and $30 million in companies that have between $20 million and $150 million in sales and EBITDA between $3 million and $25 million. It prefers to acquire minority stakes. It seeks to exit its investments through strategic acquisitions by other industry participants or financial buyers, initial public offerings of common stock, or other capital market transactions.