In today's semi-final round matchup of The Motley Fool Better-Buy Tournament, Prospect Capital squares off against CONSOL Energy in a battle to determine which stock is the better buy now. The 64-company tournament pits two Motley Fool analysts against each as they make the case for their stocks, with the winner determined by you, the readers.
Motley Fool Financials analyst David Hanson believes Prospect Capital (NASDAQ:PSEC) should move on to the next round because of the company's larger investment portfolio, which has excellent credit quality. Prospect Capital's BDC structure allows it to pass earnings through to shareholders, which results in a big dividend yield. Finally, David sees Prospect's large size and scale as a big advantage when it comes to finding new investments and getting favorable prices.
In the video below, Motley Fool energy analyst Taylor Muckerman thinks CONSOL Energy (NYSE:CNX) should move to the next round because of its accelerating shift into natural gas. While it might be the oldest coal producer in the nation, natural gas is CONSOL's future. To avoid being blindsided, though, CONSOL wisely chose to hold onto its lower cost thermal coal mines and its solely owned export terminal as a nice hedge while the market shakes itself out. Other coal companies are likely jealous of this flexibility, so don't be jealous if CONSOL moves on.
Watch these analysts square off in the video below and then vote for a winner. Then check out the other companies in the Motley Fool Better-Buy Bracket.
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Cast your vote in the poll below the video!
David Hanson has no position in any stocks mentioned. Taylor Muckerman owns shares of CONSOL Energy. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.