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GGN vs NMFC

GGN
GAMCO Global Gold, Natural Resources & Income Trust
BULLISH
Price
$5.36
Market Cap
$837.4M
Sector
Financial Services
AI Confidence
80%
NMFC
New Mountain Finance Corporation
BEARISH
Price
$8.22
Market Cap
$828.6M
Sector
Financial Services
AI Confidence
85%

Valuation

P/E Ratio
GGN
2.67
NMFC
51.38
Forward P/E
GGN
--
NMFC
7.72
P/B Ratio
GGN
0.97
NMFC
0.71
P/S Ratio
GGN
36.44
NMFC
2.53
EV/EBITDA
GGN
--
NMFC
--

Profitability

Gross Margin
GGN
100.0%
NMFC
100.0%
Operating Margin
GGN
58.89%
NMFC
80.85%
Profit Margin
GGN
1371.1%
NMFC
5.04%
ROE
GGN
38.98%
NMFC
1.33%
ROA
GGN
1.01%
NMFC
5.29%

Growth

Revenue Growth
GGN
12.0%
NMFC
-15.1%
Earnings Growth
GGN
8382.9%
NMFC
--

Financial Health

Debt/Equity
GGN
0.02
NMFC
1.41
Current Ratio
GGN
0.29
NMFC
0.56
Quick Ratio
GGN
0.01
NMFC
0.48

Dividends

Dividend Yield
GGN
6.67%
NMFC
15.57%
Payout Ratio
GGN
17.91%
NMFC
800.0%

AI Verdict

GGN BULLISH

GGN exhibits a stable financial profile with a Piotroski F-Score of 5/9 and is trading at a massive discount to its deterministic value markers. The current price of $5.36 is significantly below both the Graham Number ($15.78) and the growth-based Intrinsic Value ($59.29), suggesting deep undervaluation. While the technical trend is currently flagged as bearish (0/100), the fundamental metrics—including a P/E of 2.67 and an ROE of 38.97%—point to a strong value opportunity. The trust's low debt-to-equity ratio (0.02) and sustainable dividend yield (6.67%) further support a bullish long-term outlook.

Strengths
Extreme valuation discount (P/E of 2.67 and P/B of 0.97)
Strong profitability with an ROE of 38.97%
Negligible leverage with a Debt/Equity ratio of 0.02
Risks
Bearish technical trend (0/100) suggesting short-term momentum loss
Very low liquidity ratios (Current Ratio 0.29), though typical for investment trusts
Anomalous profit margin (1371%) suggesting non-operational income volatility
NMFC BEARISH

NMFC exhibits significant financial instability characterized by a mediocre Piotroski F-Score of 4/9 and a technical trend of 0/100. While the stock trades at a discount to book value (P/B 0.71), it is priced well above its Graham Number ($6.44) and intrinsic value ($1.12). The most alarming metric is the 800% dividend payout ratio, which suggests the current 15.57% yield is unsustainable based on GAAP earnings. Negative revenue growth and a consistent track record of earnings misses further degrade the outlook.

Strengths
Trading at a discount to book value (P/B 0.71)
High current dividend yield of 15.57%
Forward P/E (7.72) is significantly lower than trailing P/E
Risks
Unsustainable dividend payout ratio of 800%
Severe revenue contraction (-15.10% YoY, -194.10% Q/Q)
Poor liquidity with a current ratio of 0.56

Compare Another Pair

GGN vs NMFC: Head-to-Head Comparison

This page compares GAMCO Global Gold, Natural Resources & Income Trust (GGN) and New Mountain Finance Corporation (NMFC) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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