Garrison Capital (NASDAQ: GARS) is one of 50 public companies in the “Investment Management & Fund Operators” industry, but how does it weigh in compared to its peers? We will compare Garrison Capital to related companies based on the strength of its dividends, valuation, analyst recommendations, earnings, institutional ownership, risk and profitability.

Earnings and Valuation

This table compares Garrison Capital and its peers gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Garrison Capital $42.95 million -$4.80 million 24.97
Garrison Capital Competitors $6.06 billion $896.42 million 651.79

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

Analyst Recommendations

This is a summary of current recommendations for Garrison Capital and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Garrison Capital 0 5 1 0 2.17
Garrison Capital Competitors 239 1624 1798 53 2.45

Garrison Capital currently has a consensus price target of $10.33, indicating a potential upside of 25.40%. As a group, “Investment Management & Fund Operators” companies have a potential upside of 7.65%. Given Garrison Capital’s higher probable upside, equities research analysts plainly believe Garrison Capital is more favorable than its peers.

Institutional & Insider Ownership

24.2% of Garrison Capital shares are held by institutional investors. Comparatively, 62.4% of shares of all “Investment Management & Fund Operators” companies are held by institutional investors. 5.8% of Garrison Capital shares are held by company insiders. Comparatively, 10.5% of shares of all “Investment Management & Fund Operators” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Volatility & Risk

Garrison Capital has a beta of 0.24, suggesting that its stock price is 76% less volatile than the S&P 500. Comparatively, Garrison Capital’s peers have a beta of 1.31, suggesting that their average stock price is 31% more volatile than the S&P 500.

Profitability

This table compares Garrison Capital and its peers’ 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 -237.66% 0.66% 5.24%

Dividends

Garrison Capital pays an annual dividend of $1.12 per share and has a dividend yield of 13.6%. 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 2.3% and pay out 44.9% of their earnings in the form of a dividend.

Summary

Garrison Capital peers 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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