PSEC vs. STT

Last updated Jun 3, 2026

PSEC (Prospect Capital Corporation) and STT (State Street Corporation) are both stocks. Both operate in the Asset Management industry within the Financial Services sector. Over the past 10 years, PSEC returned 0.63%/yr vs 13.32%/yr for STT. At a 0.39 correlation, their price movements are largely independent.

Performance

PSEC vs. STT - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Prospect Capital Corporation (PSEC) and State Street Corporation (STT). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, PSEC achieves a 1.34% return, which is significantly lower than STT's 25.50% return. Over the past 10 years, PSEC has underperformed STT with an annualized return of 0.63%, while STT has yielded a comparatively higher 13.32% annualized return.

PSEC

• 1D: -1.63%
• 1M: -12.56%
• YTD: 1.34%
• 6M: 2.01%
• 1Y: -8.85%
• 3Y*: -15.46%
• 5Y*: -12.62%
• 10Y*: 0.63%

STT

• 1D: -0.01%
• 1M: 5.12%
• YTD: 25.50%
• 6M: 36.03%
• 1Y: 70.69%
• 3Y*: 35.08%
• 5Y*: 16.57%
• 10Y*: 13.32%

*Multi-year figures are annualized to reflect compound growth (CAGR)

PSEC vs. STT - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
PSEC Prospect Capital Corporation	1.34%	-28.86%	-18.16%	-4.13%	-8.61%	70.00%	-3.54%	13.83%	4.09%	-9.44%
STT State Street Corporation	25.50%	35.54%	30.18%	3.54%	-13.75%	31.03%	-4.76%	29.35%	-33.97%	27.84%

Correlation

The correlation between PSEC and STT is 0.29, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.29
Correlation (3Y) Calculated over the trailing 3-year period	0.34
Correlation (5Y) Calculated over the trailing 5-year period	0.43
Correlation (10Y) Calculated over the trailing 10-year period	0.38
Correlation (All Time) Calculated using the full available price history since Jul 28, 2004	0.39

The correlation between PSEC and STT shifts across timeframes, from 0.29 (1 year) to 0.43 (5 years), reflecting how their relationship changes across market environments.

Fundamentals

EPS PSEC : -$0.28 STT : $10.18
PS Ratio PSEC : 5.45 STT : 2.04
Total Revenue (TTM) PSEC : $151.90M STT : $22.63B
Gross Profit (TTM) PSEC : -$59.07M STT : $13.89B
EBITDA (TTM) PSEC : -$94.23M STT : $4.29B

Return for Risk

PSEC vs. STT — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

PSEC

PSEC Risk / Return Rank: 27
PSEC Sharpe Ratio Rank: 29
PSEC Sortino Ratio Rank: 26
PSEC Omega Ratio Rank: 26
PSEC Calmar Ratio Rank: 27
PSEC Martin Ratio Rank: 26

STT

STT Risk / Return Rank: 92
STT Sharpe Ratio Rank: 93
STT Sortino Ratio Rank: 90
STT Omega Ratio Rank: 91
STT Calmar Ratio Rank: 93
STT Martin Ratio Rank: 94

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

PSEC vs. STT - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Prospect Capital Corporation (PSEC) and State Street Corporation (STT). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	PSEC	STT	Difference
Sharpe ratio Return per unit of total volatility	-0.27	2.86	-3.13
Sortino ratio Return per unit of downside risk	-0.17	3.23	-3.40
Omega ratio Gain probability vs. loss probability	0.98	1.46	-0.48
Calmar ratio Return relative to maximum drawdown	-0.40	5.99	-6.39
Martin ratio Return relative to average drawdown	-0.74	18.26	-19.01
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

PSEC vs. STT - Sharpe Ratio Comparison

The current PSEC Sharpe Ratio is -0.27, which is lower than the STT Sharpe Ratio of 2.86. The chart below compares the historical Sharpe Ratios of PSEC and STT, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	PSEC	STT	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	-0.27	2.86	-3.13
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	-0.45	0.55	-1.00
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.02	0.41	-0.38
Sharpe Ratio (All Time) Calculated using the full available price history	0.09	0.31	-0.22

Drawdowns

PSEC vs. STT - Drawdown Comparison

The maximum PSEC drawdown since its inception was -61.51%, smaller than the maximum STT drawdown of -82.26%. Use the drawdown chart below to compare losses from any high point for PSEC and STT.

Drawdown Indicators

	PSEC	STT	Difference
Max Drawdown Largest peak-to-trough decline	-61.51%	-82.26%	+20.75%
Max Drawdown (1Y) Largest decline over 1 year	-27.04%	-11.79%	-15.25%
Max Drawdown (3Y) Largest decline over 3 years	-50.64%	-25.68%	-24.96%
Max Drawdown (5Y) Largest decline over 5 years	-57.21%	-41.45%	-15.76%
Max Drawdown (10Y) Largest decline over 10 years	-57.21%	-59.59%	+2.38%
Current Drawdown Current decline from peak	-51.10%	-0.01%	-51.09%
Average Drawdown Average peak-to-trough decline	-15.59%	-20.48%	+4.89%
Ulcer Index Depth and duration of drawdowns from previous peaks	14.51%	3.87%	+10.64%

Volatility

PSEC vs. STT - Volatility Comparison

Prospect Capital Corporation (PSEC) has a higher volatility of 14.46% compared to State Street Corporation (STT) at 6.51%. This indicates that PSEC's price experiences larger fluctuations and is considered to be riskier than STT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PSEC	STT	Difference
Volatility (1M) Calculated over the trailing 1-month period	14.46%	6.51%	+7.95%
Volatility (6M) Calculated over the trailing 6-month period	26.50%	18.28%	+8.22%
Volatility (1Y) Calculated over the trailing 1-year period	33.21%	24.81%	+8.40%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	27.94%	30.41%	-2.47%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	27.28%	32.92%	-5.64%

Dividends

PSEC vs. STT - Dividend Comparison

PSEC's dividend yield for the trailing twelve months is around 21.90%, more than STT's 2.05% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
PSEC Prospect Capital Corporation	21.90%	20.85%	16.01%	12.02%	10.30%	8.56%	13.31%	11.18%	11.41%	13.45%	11.98%	14.72%
STT State Street Corporation	2.05%	2.42%	2.18%	3.41%	3.09%	2.34%	2.86%	2.50%	2.82%	1.64%	1.85%	1.99%

Financials

PSEC vs. STT - Profitability Comparison

The chart below illustrates the profitability comparison between Prospect Capital Corporation and State Street Corporation over time, highlighting three key metrics: Gross Profit Margin, Operating Margin, and Net Profit Margin.

PSEC - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Prospect Capital Corporation reported a gross profit of 0.00 and revenue of 123.07M. Therefore, the gross margin over that period was 0.0%.

STT - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, State Street Corporation reported a gross profit of 3.64B and revenue of 5.59B. Therefore, the gross margin over that period was 65.1%.

PSEC - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Prospect Capital Corporation reported an operating income of 0.00 and revenue of 123.07M, resulting in an operating margin of 0.0%.

STT - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, State Street Corporation reported an operating income of 918.00M and revenue of 5.59B, resulting in an operating margin of 16.4%.

PSEC - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Prospect Capital Corporation reported a net income of 0.00 and revenue of 123.07M, resulting in a net margin of 0.0%.

STT - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, State Street Corporation reported a net income of 747.00M and revenue of 5.59B, resulting in a net margin of 13.4%.

Frequently Asked Questions

Can I hold both PSEC and STT in my portfolio?

PSEC and STT have a correlation of 0.29, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, PSEC or STT?

PSEC has higher volatility (14.46%) compared to STT (6.51%). In terms of maximum drawdown, PSEC dropped -61.51% vs STT's -82.26%.

Which has better risk-adjusted returns?

STT currently has the higher Sharpe Ratio (2.86 vs -0.27), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.