Second Street Capital (OTCMKTS:CTON – Get Rating) and Beazer Homes USA (NYSE:BZH – Get Rating) are both small-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, institutional ownership, analyst recommendations, profitability, dividends, risk and earnings.
Analyst Recommendations
This is a breakdown of current ratings and price targets for Second Street Capital and Beazer Homes USA, as reported by MarketBeat.
Get Second Street Capital alerts:| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Second Street Capital | 0 | 0 | 0 | 0 | N/A |
| Beazer Homes USA | 0 | 2 | 1 | 0 | 2.33 |
Beazer Homes USA has a consensus target price of $21.50, suggesting a potential upside of 47.36%. Given Beazer Homes USA's higher probable upside, analysts clearly believe Beazer Homes USA is more favorable than Second Street Capital.
Valuation and Earnings
This table compares Second Street Capital and Beazer Homes USA's top-line revenue, earnings per share (EPS) and valuation.| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Second Street Capital | N/A | N/A | N/A | N/A | N/A |
| Beazer Homes USA | $2.14 billion | 0.21 | $122.02 million | $5.92 | 2.46 |
Beazer Homes USA has higher revenue and earnings than Second Street Capital.
Insider and Institutional Ownership
78.4% of Beazer Homes USA shares are held by institutional investors. 71.9% of Second Street Capital shares are held by insiders. Comparatively, 6.0% of Beazer Homes USA shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Profitability
This table compares Second Street Capital and Beazer Homes USA's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Second Street Capital | N/A | N/A | N/A |
| Beazer Homes USA | 8.76% | 23.23% | 8.56% |
Volatility and Risk
Second Street Capital has a beta of 21.2, indicating that its share price is 2,020% more volatile than the S&P 500. Comparatively, Beazer Homes USA has a beta of 2.01, indicating that its share price is 101% more volatile than the S&P 500.
Summary
Beazer Homes USA beats Second Street Capital on 7 of the 9 factors compared between the two stocks.
About Second Street Capital
(Get Rating)
Second Street Capital, Inc. operates as a specialty finance company in the United States. It provides asset based lending to small and medium sized businesses, export trading companies, and small and medium sized homebuilders, developers, and investors. The company offers revenue participation asset based and mortgage loans, as well as preferred equity investments and senior secured loans. It also makes and manages investments in qualified real estate related assets as a principal and on behalf of institutional clients. The company was formerly known as Calton, Inc. and changed its name to Second Street Capital, Inc. in November 2011. Second Street Capital, Inc. was founded in 1969 and is headquartered in Fort Lauderdale, Florida.
About Beazer Homes USA
(Get Rating)
Beazer Homes USA, Inc. operates as a homebuilder in the United States. It designs, constructs, and sells single-family and multi-family homes under the Beazer Homes, Gatherings, and Choice Plans names. The company sells its homes through commissioned new home sales counselors and independent brokers in Arizona, California, Nevada, Texas, Delaware, Maryland, Indiana, Tennessee, Virginia, Florida, Georgia, North Carolina, and South Carolina. Beazer Homes USA, Inc. was founded in 1985 and is headquartered in Atlanta, Georgia.
Receive News & Ratings for Second Street Capital Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Second Street Capital and related companies with MarketBeat.com's FREE daily email newsletter.