SAJ vs SAR vs GAIN vs GLAD vs MRCC

For growth investors, Saratoga Investment Corp.

(SAR) is the stronger pick with 1334% revenue growth year-over-year, versus -39. 7% for Monroe Capital Corporation (MRCC). Gladstone Capital Corporation (GLAD) offers the better valuation at 7. 8x trailing P/E (10. 3x forward), making it the more compelling value choice. Analysts rate Saratoga Investment Corp. (SAR) a "Hold" — based on 11 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, Gladstone Capital Corporation (GLAD) is the cheapest at 7.

8x versus Saratoga Investment Corp 8. 00% at 12. 7x. On forward P/E, Saratoga Investment Corp. is actually cheaper at 9. 0x — notably different from the trailing picture, reflecting expected earnings growth. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Monroe Capital Corporation wins at 0. 32x versus Saratoga Investment Corp. 's 0. 76x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, Gladstone Investment Corporation (GAIN) delivered a total return of +72.

0%, compared to -0. 9% for Monroe Capital Corporation (MRCC). Over 10 years, the gap is even starker: GAIN returned +319. 3% versus MRCC's +22. 8%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Gladstone Investment Corporation (GAIN) is the lower-risk stock at 0.

53β versus Monroe Capital Corporation's 0. 74β — meaning MRCC is approximately 39% more volatile than GAIN relative to the S&P 500. On balance sheet safety, Gladstone Capital Corporation (GLAD) carries a lower debt/equity ratio of 83% versus 199% for Saratoga Investment Corp 8. 00% — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Saratoga Investment Corp.

(SAR) is pulling ahead at 1334% versus -39. 7% for Monroe Capital Corporation (MRCC). On earnings-per-share growth, the picture is similar: Saratoga Investment Corp 8. 00% grew EPS 184. 5% year-over-year, compared to -41. 2% for Gladstone Capital Corporation. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Gladstone Investment Corporation (GAIN) is the more profitable company, earning 72.

7% net margin versus 0. 0% for Saratoga Investment Corp. — meaning it keeps 72. 7% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: GAIN leads at 72. 7% versus -0. 1% for SAR. At the gross margin level — before operating expenses — GLAD leads at 87. 3%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, Monroe Capital Corporation (MRCC) is the more undervalued stock at a PEG of 0. 32x versus Saratoga Investment Corp. 's 0. 76x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Saratoga Investment Corp. (SAR) trades at 9. 0x forward P/E versus 40. 7x for Gladstone Investment Corporation — 31. 7x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for MRCC: 57. 5% to $8. 00.

All stocks in this comparison pay dividends.

Saratoga Investment Corp. (SAR) offers the highest yield at 100. 0%, versus 0. 2% for Monroe Capital Corporation (MRCC).

For long-horizon retirement investors, Gladstone Investment Corporation (GAIN) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.

53), 10. 0% yield, +319. 3% 10Y return). Both have compounded well over 10 years (GAIN: +319. 3%, MRCC: +22. 8%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Financial Services sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

In terms of investment character: SAJ is a small-cap high-growth stock; SAR is a small-cap high-growth stock; GAIN is a small-cap deep-value stock; GLAD is a small-cap high-growth stock; MRCC is a small-cap deep-value stock. SAJ, SAR, GAIN, GLAD pay a dividend while MRCC does not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.