Garrison Capital (NASDAQ: GARS) is one of 52 public companies in the “Investment Management & Fund Operators” industry, but how does it weigh in compared to its competitors? We will compare Garrison Capital to similar businesses based on the strength of its analyst recommendations, institutional ownership, valuation, profitability, dividends, risk and earnings.

Risk & Volatility

Garrison Capital has a beta of 0.24, indicating that its share price is 76% less volatile than the S&P 500. Comparatively, Garrison Capital’s competitors have a beta of 1.38, indicating that their average share price is 38% more volatile than the S&P 500.

Dividends

Garrison Capital pays an annual dividend of $1.12 per share and has a dividend yield of 13.1%. Garrison Capital pays out 339.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Investment Management & Fund Operators” companies pay a dividend yield of 2.4% and pay out 45.0% of their earnings in the form of a dividend.

Profitability

This table compares Garrison Capital and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Garrison Capital 14.66% 9.33% 4.49%
Garrison Capital Competitors -240.81% 0.48% 5.08%

Institutional and Insider Ownership

20.3% of Garrison Capital shares are held by institutional investors. Comparatively, 62.0% of shares of all “Investment Management & Fund Operators” companies are held by institutional investors. 5.8% of Garrison Capital shares are held by insiders. Comparatively, 10.5% of shares of all “Investment Management & Fund Operators” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Garrison Capital and its competitors top-line revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Garrison Capital $42.95 million -$4.80 million 25.88
Garrison Capital Competitors $6.06 billion $896.42 million 668.83

Garrison Capital’s competitors have higher revenue and earnings than Garrison Capital. Garrison Capital is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Garrison Capital and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Garrison Capital 0 5 1 0 2.17
Garrison Capital Competitors 292 1787 1888 52 2.42

Garrison Capital presently has a consensus price target of $10.33, suggesting a potential upside of 21.00%. As a group, “Investment Management & Fund Operators” companies have a potential upside of 7.68%. Given Garrison Capital’s higher possible upside, equities analysts clearly believe Garrison Capital is more favorable than its competitors.

Summary

Garrison Capital competitors beat Garrison Capital on 11 of the 15 factors compared.

About Garrison Capital

Garrison Capital Inc. is a managed, closed-end, non-diversified management investment company. The Company’s investment objective is to generate current income and capital appreciation by making investments primarily in debt securities and loans of the United States-based middle-market companies, which it defines as those having annual earnings before interest, taxes and depreciation, or EBITDA, of certain amount. It invests or provides direct lending in first lien senior secured loans, second lien senior secured loans, one-stop senior secured loans or unitranche loans, subordinated or mezzanine loans, unsecured consumer loans and to a lesser extent, selected equity co-investments in middle-market companies. The Company intends to generate risk-adjusted net returns by assembling a portfolio of investments. The Company’s investment advisor is Garrison Capital Advisers LLC.

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