Vinci Partners Investments (NASDAQ:VINP) vs. Great Elm Capital (NASDAQ:GECC) Critical Comparison

Vinci Partners Investments (NASDAQ:VINP – Get Rating) and Great Elm Capital (NASDAQ:GECC – Get Rating) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, earnings, institutional ownership, profitability, risk and dividends.

Valuation & Earnings

This table compares Vinci Partners Investments and Great Elm Capital’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vinci Partners Investments	$79.04 million	N/A	$42.50 million	$0.74	11.86
Great Elm Capital	-$16.08 million	-2.61	-$15.58 million	($2.77)	-3.30

Vinci Partners Investments has higher revenue and earnings than Great Elm Capital. Great Elm Capital is trading at a lower price-to-earnings ratio than Vinci Partners Investments, indicating that it is currently the more affordable of the two stocks.

Dividends

Vinci Partners Investments pays an annual dividend of $0.68 per share and has a dividend yield of 7.7%. Great Elm Capital pays an annual dividend of $1.40 per share and has a dividend yield of 15.3%. Vinci Partners Investments pays out 91.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Great Elm Capital pays out -50.5% of its earnings in the form of a dividend. Great Elm Capital is clearly the better dividend stock, given its higher yield and lower payout ratio.

Institutional & Insider Ownership

19.5% of Vinci Partners Investments shares are owned by institutional investors. Comparatively, 41.9% of Great Elm Capital shares are owned by institutional investors. 49.3% of Vinci Partners Investments shares are owned by company insiders. Comparatively, 11.8% of Great Elm Capital shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Risk and Volatility

Vinci Partners Investments has a beta of -0.17, meaning that its share price is 117% less volatile than the S&P 500. Comparatively, Great Elm Capital has a beta of 1.51, meaning that its share price is 51% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Vinci Partners Investments and Great Elm Capital, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vinci Partners Investments	0	0	0	0	N/A
Great Elm Capital	0	1	0	0	2.00

Great Elm Capital has a consensus target price of $12.00, indicating a potential upside of 31.43%. Given Great Elm Capital’s higher possible upside, analysts plainly believe Great Elm Capital is more favorable than Vinci Partners Investments.

Profitability

This table compares Vinci Partners Investments and Great Elm Capital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Vinci Partners Investments	53.64%	15.20%	12.73%
Great Elm Capital	-63.79%	12.10%	3.32%

Summary

Vinci Partners Investments beats Great Elm Capital on 8 of the 13 factors compared between the two stocks.

About Vinci Partners Investments

(Get Rating)

Vinci Partners Investments Ltd. operates as an asset management platform in Brazil. Its portfolio of investment products and solutions covers private equity, infrastructures, real estate, credit, public equities, hedge funds, and investment products and solutions to institutional and HNWI clients. The company also offers financial and strategic advisory services, focusing primarily on IPO advisory and mergers and acquisition transactions on the sell side or the buy side to entrepreneurs, corporate management teams, and/or boards of directors. Vinci Partners Investments Ltd. was founded in 2009 and is headquartered in Rio de Janeiro, Brazil.

About Great Elm Capital

(Get Rating)

Great Elm Capital is an externally-managed business development company that invests in the debt instruments of middle-market companies. The company seeks to generate current income and capital appreciation through debt and equity investments and invests primarily in senior secured and senior unsecured debt instruments, as well as in junior loans and mezzanine debt of middle-market companies and small businesses.