SCM vs. GAIN

Last updated Jun 3, 2026

SCM (Stellus Capital Investment Corporation) and GAIN (Gladstone Investment Corporation) are both stocks. Both operate in the Asset Management industry within the Financial Services sector. Over the past 10 years, SCM returned 10.15%/yr vs 19.79%/yr for GAIN. At a 0.40 correlation, their price movements are largely independent.

Performance

SCM vs. GAIN - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Stellus Capital Investment Corporation (SCM) and Gladstone Investment Corporation (GAIN). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, SCM achieves a -25.24% return, which is significantly lower than GAIN's 17.76% return. Over the past 10 years, SCM has underperformed GAIN with an annualized return of 10.15%, while GAIN has yielded a comparatively higher 19.79% annualized return.

SCM

• 1D: -1.10%
• 1M: -7.71%
• YTD: -25.24%
• 6M: -20.88%
• 1Y: -22.53%
• 3Y*: -2.63%
• 5Y*: 2.85%
• 10Y*: 10.15%

GAIN

• 1D: 0.69%
• 1M: -4.34%
• YTD: 17.76%
• 6M: 18.02%
• 1Y: 16.35%
• 3Y*: 21.80%
• 5Y*: 14.16%
• 10Y*: 19.79%

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

SCM vs. GAIN - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
SCM Stellus Capital Investment Corporation	-25.24%	3.74%	20.35%	8.71%	10.60%	30.12%	-14.12%	21.00%	9.57%	20.26%
GAIN Gladstone Investment Corporation	17.76%	17.11%	5.33%	31.01%	-17.55%	82.14%	-16.56%	53.31%	-9.67%	44.63%

Correlation

The correlation between SCM and GAIN is 0.50, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.50
Correlation (3Y) Calculated over the trailing 3-year period	0.44
Correlation (5Y) Calculated over the trailing 5-year period	0.46
Correlation (10Y) Calculated over the trailing 10-year period	0.44
Correlation (All Time) Calculated using the full available price history since Nov 9, 2012	0.40

Fundamentals

EPS SCM : $0.77 GAIN : $3.40
PE Ratio SCM : 11.60 GAIN : 4.71
PEG Ratio SCM : 1.66 GAIN : 0.11
PS Ratio SCM : 0.00 GAIN : 5.45
Total Revenue (TTM) SCM : $23.29T GAIN : $112.66M
Gross Profit (TTM) SCM : $26.31M GAIN : $80.66M
EBITDA (TTM) SCM : $23.13M GAIN : $57.95M

Return for Risk

SCM vs. GAIN — Risk / Return Rank

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

SCM

SCM Risk / Return Rank: 11
SCM Sharpe Ratio Rank: 6
SCM Sortino Ratio Rank: 9
SCM Omega Ratio Rank: 10
SCM Calmar Ratio Rank: 18
SCM Martin Ratio Rank: 14

GAIN

GAIN Risk / Return Rank: 69
GAIN Sharpe Ratio Rank: 68
GAIN Sortino Ratio Rank: 61
GAIN Omega Ratio Rank: 61
GAIN Calmar Ratio Rank: 76
GAIN Martin Ratio Rank: 78

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.

SCM vs. GAIN - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Stellus Capital Investment Corporation (SCM) and Gladstone Investment Corporation (GAIN). 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.

	SCM	GAIN	Difference
Sharpe ratio Return per unit of total volatility	-0.91	0.88	-1.79
Sortino ratio Return per unit of downside risk	-1.16	1.33	-2.50
Omega ratio Gain probability vs. loss probability	0.86	1.18	-0.32
Calmar ratio Return relative to maximum drawdown	-0.61	2.18	-2.79
Martin ratio Return relative to average drawdown	-1.17	5.97	-7.14
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

SCM vs. GAIN - Sharpe Ratio Comparison

The current SCM Sharpe Ratio is -0.91, which is lower than the GAIN Sharpe Ratio of 0.88. The chart below compares the historical Sharpe Ratios of SCM and GAIN, 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

	SCM	GAIN	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	-0.91	0.88	-1.79
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.13	0.64	-0.51
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.28	0.77	-0.50
Sharpe Ratio (All Time) Calculated using the full available price history	0.21	0.25	-0.04

Drawdowns

SCM vs. GAIN - Drawdown Comparison

The maximum SCM drawdown since its inception was -66.06%, smaller than the maximum GAIN drawdown of -80.87%. Use the drawdown chart below to compare losses from any high point for SCM and GAIN.

Drawdown Indicators

	SCM	GAIN	Difference
Max Drawdown Largest peak-to-trough decline	-66.06%	-80.87%	+14.81%
Max Drawdown (1Y) Largest decline over 1 year	-38.26%	-8.12%	-30.14%
Max Drawdown (3Y) Largest decline over 3 years	-38.26%	-14.76%	-23.50%
Max Drawdown (5Y) Largest decline over 5 years	-38.26%	-26.26%	-12.00%
Max Drawdown (10Y) Largest decline over 10 years	-66.06%	-56.28%	-9.78%
Current Drawdown Current decline from peak	-34.11%	-5.36%	-28.75%
Average Drawdown Average peak-to-trough decline	-9.65%	-15.92%	+6.27%
Ulcer Index Depth and duration of drawdowns from previous peaks	19.84%	3.01%	+16.83%

Volatility

SCM vs. GAIN - Volatility Comparison

The current volatility for Stellus Capital Investment Corporation (SCM) is 5.63%, while Gladstone Investment Corporation (GAIN) has a volatility of 10.75%. This indicates that SCM experiences smaller price fluctuations and is considered to be less risky than GAIN based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SCM	GAIN	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.63%	10.75%	-5.12%
Volatility (6M) Calculated over the trailing 6-month period	21.17%	15.84%	+5.33%
Volatility (1Y) Calculated over the trailing 1-year period	24.92%	18.72%	+6.20%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	22.08%	22.28%	-0.20%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	36.75%	25.66%	+11.09%

Dividends

SCM vs. GAIN - Dividend Comparison

SCM's dividend yield for the trailing twelve months is around 16.74%, more than GAIN's 9.37% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
GAIN Gladstone Investment Corporation	9.37%	10.74%	12.53%	17.24%	9.88%	6.06%	9.22%	7.06%	9.24%	7.94%	8.87%	9.68%
SCM Stellus Capital Investment Corporation	16.74%	12.62%	11.62%	12.45%	8.14%	8.29%	10.57%	9.55%	10.50%	10.35%	11.27%	14.10%

Financials

Frequently Asked Questions

Can I hold both SCM and GAIN in my portfolio?

SCM and GAIN have a correlation of 0.50, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, SCM or GAIN?

GAIN has higher volatility (10.75%) compared to SCM (5.63%). In terms of maximum drawdown, SCM dropped -66.06% vs GAIN's -80.87%.

Which has better risk-adjusted returns?

GAIN currently has the higher Sharpe Ratio (0.88 vs -0.91), 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.