Garrison Capital (GARS) & Janus Capital Group (JNS) Financial Analysis
Garrison Capital (NASDAQ: GARS) and Janus Capital Group (NYSE:JNS) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, risk, earnings, analyst recommendations, valuation, institutional ownership and profitability.
Garrison Capital pays an annual dividend of $1.12 per share and has a dividend yield of 13.2%. Janus Capital Group pays an annual dividend of $0.44 per share and has a dividend yield of 3.1%. Janus Capital Group pays out 55.7% of its earnings in the form of a dividend. Janus Capital Group has increased its dividend for 6 consecutive years.
Risk and Volatility
Garrison Capital has a beta of 0.25, suggesting that its stock price is 75% less volatile than the S&P 500. Comparatively, Janus Capital Group has a beta of 1.6, suggesting that its stock price is 60% more volatile than the S&P 500.
This table compares Garrison Capital and Janus Capital Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Janus Capital Group||12.54%||7.26%||4.48%|
Earnings and Valuation
This table compares Garrison Capital and Janus Capital Group’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Janus Capital Group||N/A||N/A||N/A||$0.79||17.94|
This is a breakdown of recent recommendations and price targets for Garrison Capital and Janus Capital Group, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Janus Capital Group||1||6||0||0||1.86|
Garrison Capital presently has a consensus target price of $10.17, indicating a potential upside of 19.89%. Janus Capital Group has a consensus target price of $14.20, indicating a potential upside of 0.21%. Given Garrison Capital’s stronger consensus rating and higher probable upside, equities analysts plainly believe Garrison Capital is more favorable than Janus Capital Group.
Insider & Institutional Ownership
21.7% of Garrison Capital shares are held by institutional investors. Comparatively, 90.2% of Janus Capital Group shares are held by institutional investors. 5.8% of Garrison Capital shares are held by company insiders. Comparatively, 2.1% of Janus Capital Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Garrison Capital beats Janus Capital Group on 7 of the 12 factors compared between the two stocks.
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.
About Janus Capital Group
Janus Capital Group Inc. provides investment management, administration, distribution and related services to financial advisors, individuals and institutional clients through mutual funds, separate accounts, other pooled investment vehicles, exchange-traded products (ETPs) and subadvised relationships (collectively referred to as investment products) in both domestic and international markets. The Company operates through investment management business segment. The Company provides investment management solutions across a range of disciplines, including fundamental the United States and global equities (growth and value), mathematical equities, fixed income and alternatives. As of December 31, 2016, the Company’s investment products were distributed through three primary channels: intermediary, institutional and self-directed. Each distribution channel focuses on specific investor groups and the requirements of each group.
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