Gladstone Capital (NASDAQ:GLAD – Get Free Report) and Dominari (NASDAQ:DOMH – Get Free Report) are both small-cap finance companies, but which is the better business? We will contrast the two companies based on the strength of their analyst recommendations, earnings, risk, valuation, profitability, institutional ownership and dividends.
Valuation and Earnings
This table compares Gladstone Capital and Dominari”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Gladstone Capital | $89.12 million | 4.71 | $58.11 million | $2.06 | 9.03 |
| Dominari | $123.10 million | 0.38 | -$22.43 million | ($5.39) | -0.35 |
Analyst Ratings
This is a summary of recent recommendations and price targets for Gladstone Capital and Dominari, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Gladstone Capital | 0 | 3 | 3 | 0 | 2.50 |
| Dominari | 1 | 0 | 0 | 0 | 1.00 |
Gladstone Capital currently has a consensus price target of $21.67, indicating a potential upside of 16.49%. Given Gladstone Capital’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Gladstone Capital is more favorable than Dominari.
Profitability
This table compares Gladstone Capital and Dominari’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Gladstone Capital | 50.48% | 9.67% | 5.00% |
| Dominari | -51.61% | -235.37% | -163.66% |
Institutional & Insider Ownership
10.7% of Gladstone Capital shares are held by institutional investors. Comparatively, 42.5% of Dominari shares are held by institutional investors. 3.8% of Gladstone Capital shares are held by company insiders. Comparatively, 55.3% of Dominari shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Volatility and Risk
Gladstone Capital has a beta of 0.94, suggesting that its stock price is 6% less volatile than the S&P 500. Comparatively, Dominari has a beta of 0.9, suggesting that its stock price is 10% less volatile than the S&P 500.
Summary
Gladstone Capital beats Dominari on 11 of the 14 factors compared between the two stocks.
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.
About Dominari
Dominari Holdings Inc., a biotechnology company, focuses on developing small-molecule anticancer therapeutics. The company's pipeline of therapeutics includes therapies for prostate cancer, pancreatic cancer, acute myeloid leukemia (AML), and acute lymphoblastic leukemia. It is developing DHA-dFdC, a pancreatic drug candidate; and KPC34, a small molecule treatment for acute myeloid leukemia and acute lymphoblastic leukemia. The company is also developing an antiviral platform that inhibits replication of viruses, including influenza virus, Ebolavirus and Marburg virus, SARS-CoV, MERS-CoV, and SARS-CoV-2. It has license agreements with the University of Texas, Silo Pharma Inc., and Wake Forest University Health Sciences. The company was formerly known as AIkido Pharma Inc. and changed its name to Dominari Holdings Inc. in December 2022. Dominari Holdings Inc. was founded in 1967 and is headquartered in New York, New York.
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