Contrasting Andover Mining (OTCMKTS:AOVTF) and Gladstone Investment (NASDAQ:GAIN)

Andover Mining (OTCMKTS:AOVTF) and Gladstone Investment (NASDAQ:GAIN) are both basic materials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, profitability, institutional ownership, earnings, valuation, dividends and analyst recommendations.

Analyst Recommendations

This is a summary of recent ratings and price targets for Andover Mining and Gladstone Investment, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Andover Mining	0	0	0	0	N/A
Gladstone Investment	0	2	1	0	2.33

Gladstone Investment has a consensus price target of $14.00, suggesting a potential downside of 0.99%. Given Gladstone Investment’s higher probable upside, analysts clearly believe Gladstone Investment is more favorable than Andover Mining.

Profitability

This table compares Andover Mining and Gladstone Investment’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Andover Mining	N/A	N/A	N/A
Gladstone Investment	97.71%	7.33%	3.77%

Insider and Institutional Ownership

11.9% of Gladstone Investment shares are owned by institutional investors. 2.5% of Gladstone Investment shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Andover Mining and Gladstone Investment’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Andover Mining	N/A	N/A	N/A	N/A	N/A
Gladstone Investment	$87.31 million	5.94	$85.31 million	$2.48	5.70

Gladstone Investment has higher revenue and earnings than Andover Mining.

Summary

Gladstone Investment beats Andover Mining on 8 of the 8 factors compared between the two stocks.

About Andover Mining

Andover Mining Corp., a development stage company, acquires, explores for, and develops resource properties in Alaska and Utah, the United States. The company explores for copper, silver, lead, zinc, gold, and volcanogenic massive sulfide deposits. It holds 100% interests in the Sun property located in the Ambler Mineral Belt of Alaska; and interests in approximately 18,000 acres of patented and unpatented mining property in the Tintic Mining Districts in Utah County and Juab County, Utah, USA. The company was formerly known as Andover Ventures Inc. and changed its name to Andover Mining Corp. in January 2012. Andover Mining Corp. was incorporated in 2003 and is based in Vancouver, Canada.

About Gladstone Investment

Gladstone Investment Corporation is business development company, specializes in lower middle market, mature stage, buyouts; refinancing existing debt; senior debt securities such as senior loans, senior term loans, lines of credit, and senior notes; senior subordinated debt securities such as senior subordinated loans and senior subordinated notes; junior subordinated debt securities such as subordinated notes and mezzanine loans; limited liability company interests, and warrants or options. The fund does not invest in start-ups. The fund seeks to invest in manufacturing, consumer products and business/consumer services sector. It seeks to invest in small and mid-sized companies based in the United States. The fund prefers to make debt investments between $5 million and $30 million and equity investments between $10 million and $40 million in companies. The fund seeks to invest in companies with revenue between $20 million and $100 million. The fund invests in companies with EBITDA from $3 million to $20 million. It seeks minority equity ownership and prefers to hold a board seat in its portfolio companies. It also prefers to take majority stake in its portfolio companies. The fund typically holds the investments for seven years and exits via sale or recapitalization, initial public offering, or sale to third party.