Prospect Capital (LTS:0R25) Moat Score: 2/10 (As of Jul. 14, 2026)

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LTS:0R25 Prospect Capital Corp LTS:0R25
28 GF Score
Price $2.25
! 1 Warning Sign
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What is Prospect Capital Moat Score?

Prospect Capital LTS:0R25 28 Moat Score is 2 as of Jul. 14, 2026. GuruFocus rates LTS:0R25 with a GF Score™ of 28/100. The stock has 1 warning sign investors should review. Among 1,696 Asset Management companies, Prospect Capital ranks better than 80.13% on this metric.

Prospect Capital has the Moat Score of 2, which implies that the company might have No Moat - Very weak/transient advantages.

Prospect Capital has No Moat: Prospect Capital Corp operates in the competitive business development company sector with limited differentiation. It lacks significant cost advantages, brand strength, or regulatory barriers, resulting in a weak competitive position.

Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more.

The company's Moat Score is based on these criteria:

1. Market leadership and sustainable market share
2. Network effects and significant customer switching costs
3. Valuable intellectual property and patents
4. Strong brand strength and deep customer loyalty
5. Durable cost advantages (e.g., economies of scale, proprietary technology)
6. Significant regulatory barriers and exclusive licenses
7. Superior distribution network
8. Strong and sustainable pricing power
9. Consistent and impactful innovation and R&D capabilities

Based on the research, GuruFocus believes Prospect Capital might have No Moat - Very weak/transient advantages.

Prospect Capital  (LTS:0R25) Moat Score Explanation

The Moat Score ranges from 0 to 10, with 10 as the highest. GuruFocus divided Moat Score into following 8 categories:

Moat Score Moat Level
10Wide Moat - Exceptionally dominant and durable wide moat
8 - 9Wide Moat - Clear and robust wide moat
7Wide Moat - Entry-level wide moat, clearly possessing durable advantages
6Narrow Moat - Strong narrow moat, clearly distinguishable but not wide
5Narrow Moat - Solid narrow moat
4Narrow Moat - Discernible but modest moat
1 - 3No Moat - Very weak/transient advantages
0No Moat - No discernible moat

Prospect Capital Moat Score Related Terms

LTS:0R25 vs FRBP, CRF, EOS: Moat Score Comparison

For the Asset Management subindustry, Prospect Capital's Moat Score, along with its competitors' market caps and Moat Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Prospect Capital Moat Score vs Asset Management Industry

For the Asset Management industry and Financial Services sector, Prospect Capital's Moat Score distribution charts can be found below:

* The bar in red indicates where Prospect Capital's Moat Score falls into.


LTS:0R25
28GF Score
Prospect Capital Corp LTS:0R25
Moat Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Frequently Asked Questions Learn more about Moat Score →
What does a Moat Score of 2 mean?
Prospect Capital (LTS:0R25) has a Moat Score of 2 as of Jul. 14, 2026. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. According to the industry distribution chart, Prospect Capital ranks #337 out of 1696 companies in the Asset Management industry, placing it in the top 19.9%.
Is Prospect Capital's Moat Score too high?
Prospect Capital's current Moat Score is 2. Based on the distribution chart, Prospect Capital ranks #337 out of 1696 companies in the Asset Management industry, which is in the top quartile — a strong position relative to peers. Overall, Prospect Capital has a GF Score™ of 28/100, reflecting its overall financial health beyond just this single metric.
How does Prospect Capital's Moat Score compare to FRBP and CRF?
According to the Asset Management industry distribution chart, Prospect Capital ranks #337 out of 1696 companies for Moat Score. This places Prospect Capital in the top 20% of its industry — outperforming the majority of peers. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Moat Score for an Asset Management company?
A good Moat Score depends on the Asset Management industry context. However, Moat Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Moat Score mean?
A high Moat Score can signal that a stock is expensive relative to its fundamentals. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. Prospect Capital's current Moat Score is 2. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Prospect Capital stock overvalued right now?
Prospect Capital (LTS:0R25) has a current Moat Score of 2. The current Moat Score is 2. Prospect Capital's overall GF Score™ is 28/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Moat Score calculated?
Moat Score is calculated from a company's financial statements. For Prospect Capital (LTS:0R25), the current Moat Score is 2 as of Jul. 14, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Prospect Capital Business Description

Other Exchanges PSEC:USARK8:Germany
Address 10 East 40th Street, 42nd Floor, New York, NY, USA, 10016
Prospect Capital Corp is a closed-end investment company based in the United States. Its investment objective is to generate both current income and long-term capital appreciation through debt and equity investments. The company invests mainly in senior and subordinated debt and equity of private companies for acquisitions, divestitures, growth, development, recapitalizations, and other purposes. It makes investments, including lending in private equity, sponsored transactions, directly to companies, investments in structured credit, real estate, and syndicated debt.
28GF Score

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Moat Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$2.25
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