NeXt Innovation (NASDAQ:GSVC) vs. PCM Fund (PCM) Critical Analysis

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NeXt Innovation (NASDAQ:GSVC) and PCM Fund (NYSE:PCM) are both small-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, earnings, profitability, dividends, analyst recommendations, risk and institutional ownership.

Institutional and Insider Ownership

32.6% of NeXt Innovation shares are owned by institutional investors. Comparatively, 7.1% of PCM Fund shares are owned by institutional investors. 1.0% of NeXt Innovation shares are owned by company insiders. Comparatively, 1.0% of PCM Fund shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current recommendations for NeXt Innovation and PCM Fund, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NeXt Innovation 0 0 2 0 3.00
PCM Fund 0 0 0 0 N/A

NeXt Innovation currently has a consensus target price of $11.25, indicating a potential upside of 100.18%. Given NeXt Innovation’s higher probable upside, analysts clearly believe NeXt Innovation is more favorable than PCM Fund.

Dividends

PCM Fund pays an annual dividend of $0.96 per share and has a dividend yield of 9.0%. NeXt Innovation does not pay a dividend.

Profitability

This table compares NeXt Innovation and PCM Fund’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
NeXt Innovation N/A -6.11% -3.33%
PCM Fund N/A N/A N/A

Volatility and Risk

NeXt Innovation has a beta of 1.6, suggesting that its share price is 60% more volatile than the S&P 500. Comparatively, PCM Fund has a beta of 0.37, suggesting that its share price is 63% less volatile than the S&P 500.

Earnings and Valuation

This table compares NeXt Innovation and PCM Fund’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
NeXt Innovation $850,000.00 131.71 $17.56 million ($0.95) -5.92
PCM Fund N/A N/A N/A N/A N/A

NeXt Innovation has higher revenue and earnings than PCM Fund.

Summary

NeXt Innovation beats PCM Fund on 6 of the 9 factors compared between the two stocks.

About NeXt Innovation

GSV Capital Corp. is specializing in growth capital, B round and beyond, emerging growth, and pre-IPO investments in late stage venture-backed private companies. It makes direct (primary rounds) investments in companies and also makes secondary direct investments. The fund may also invest in select publicly-traded equity securities of companies that otherwise meet its investment criteria. It seeks to invest in the technology subsectors of social/mobile marketplaces, sustainability, cloud computing and big data, social media, mobile computing and applications, software as a service, Internet commerce, green technology and education technology. The fund invests in the form of non-controlling equity and equity-related investments, including common stock, warrants, preferred stock and similar forms of senior equity, which may or may not be convertible into a portfolio company's common equity, and convertible debt securities with a significant equity component. It will invest in companies based in United States. It generally invests in companies with a market value of over $100 million. Typically, the firm exits its position within 18 months of going public, or 12 months after any relevant lock-up has expired.

About PCM Fund

There is no company description available for PCM Fund.

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