Critical Analysis: Alcentra Capital Corp. (ABDC) & Its Competitors
Alcentra Capital Corp. (NASDAQ: ABDC) is one of 589 publicly-traded companies in the “Closed End Funds” industry, but how does it weigh in compared to its rivals? We will compare Alcentra Capital Corp. to related businesses based on the strength of its dividends, earnings, profitability, valuation, analyst recommendations, risk and institutional ownership.
Alcentra Capital Corp. pays an annual dividend of $1.36 per share and has a dividend yield of 18.5%. Alcentra Capital Corp. pays out 283.3% 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, “Closed End Funds” companies pay a dividend yield of 8.5% and pay out 95.1% of their earnings in the form of a dividend.
Insider and Institutional Ownership
31.5% of Alcentra Capital Corp. shares are owned by institutional investors. Comparatively, 24.0% of shares of all “Closed End Funds” companies are owned by institutional investors. 5.0% of Alcentra Capital Corp. shares are owned by company insiders. Comparatively, 4.2% of shares of all “Closed End Funds” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Earnings and Valuation
This table compares Alcentra Capital Corp. and its rivals revenue, earnings per share and valuation.
|Gross Revenue||NetIncome||Price/Earnings Ratio|
|Alcentra Capital Corp.||$40.60 million||$8.78 million||15.31|
|Alcentra Capital Corp. Competitors||$238.79 million||$43.51 million||144.41|
Alcentra Capital Corp.’s rivals have higher revenue and earnings than Alcentra Capital Corp.. Alcentra Capital Corp. is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.
Risk and Volatility
Alcentra Capital Corp. has a beta of 0.68, indicating that its share price is 32% less volatile than the S&P 500. Comparatively, Alcentra Capital Corp.’s rivals have a beta of 0.56, indicating that their average share price is 44% less volatile than the S&P 500.
This table compares Alcentra Capital Corp. and its rivals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Alcentra Capital Corp.||-2.25%||11.32%||7.03%|
|Alcentra Capital Corp. Competitors||-36.20%||6.63%||5.14%|
This is a summary of recent recommendations and price targets for Alcentra Capital Corp. and its rivals, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Alcentra Capital Corp.||2||1||1||0||1.75|
|Alcentra Capital Corp. Competitors||232||1562||1915||31||2.47|
Alcentra Capital Corp. presently has a consensus price target of $12.83, indicating a potential upside of 74.60%. As a group, “Closed End Funds” companies have a potential upside of 87.92%. Given Alcentra Capital Corp.’s rivals stronger consensus rating and higher possible upside, analysts plainly believe Alcentra Capital Corp. has less favorable growth aspects than its rivals.
Alcentra Capital Corp. rivals beat Alcentra Capital Corp. on 8 of the 15 factors compared.
About Alcentra Capital Corp.
Alcentra Capital Corporation is a specialty finance company that operates as a non-diversified, closed-end management investment company. The Company operates as a business development company and a regulated investment company. It provides customized debt and equity financing solutions to lower middle-market companies, which are companies having annual earnings, before interest, taxes, depreciation and amortization of between $5 million and $15 million, and/or revenues of between $10 million and $100 million. Its investments range in size from $5 million to $15 million. Its investment objective is to generate both current income and capital appreciation primarily by making direct investments in lower middle-market companies in the form of senior debt, unitranche, second lien, subordinated debt and, to a lesser extent, senior debt and minority equity investments. Its investment focus is to make loans to, and selected equity investments in, privately-held lower-middle-market companies.
Receive News & Ratings for Alcentra Capital Corp. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Alcentra Capital Corp. and related companies with Analyst Ratings Network's FREE daily email newsletter.