Fidus Investment Corporation (NASDAQ: FDUS) is one of 576 publicly-traded companies in the “Closed End Funds” industry, but how does it contrast to its competitors? We will compare Fidus Investment Corporation to similar businesses based on the strength of its risk, dividends, earnings, institutional ownership, valuation, analyst recommendations and profitability.

Institutional & Insider Ownership

30.7% of Fidus Investment Corporation shares are held by institutional investors. Comparatively, 23.2% of shares of all “Closed End Funds” companies are held by institutional investors. 1.3% of Fidus Investment Corporation shares are held by company insiders. Comparatively, 3.5% of shares of all “Closed End Funds” 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.

Dividends

Fidus Investment Corporation pays an annual dividend of $1.56 per share and has a dividend yield of 9.4%. Fidus Investment Corporation pays out 79.2% 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 9.7% and pay out 96.7% of their earnings in the form of a dividend.

Profitability

This table compares Fidus Investment Corporation and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Fidus Investment Corporation 64.21% 9.34% 5.82%
Fidus Investment Corporation Competitors -49.63% 6.82% 5.25%

Risk and Volatility

Fidus Investment Corporation has a beta of 1.14, suggesting that its stock price is 14% more volatile than the S&P 500. Comparatively, Fidus Investment Corporation’s competitors have a beta of 0.54, suggesting that their average stock price is 46% less volatile than the S&P 500.

Valuation & Earnings

This table compares Fidus Investment Corporation and its competitors top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Fidus Investment Corporation $60.23 million $41.57 million 8.45
Fidus Investment Corporation Competitors $117.22 million $49.04 million 1.44

Fidus Investment Corporation’s competitors have higher revenue and earnings than Fidus Investment Corporation. Fidus Investment Corporation is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Analyst Recommendations

This is a breakdown of recent recommendations for Fidus Investment Corporation and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Fidus Investment Corporation 0 2 1 0 2.33
Fidus Investment Corporation Competitors 201 1214 1426 14 2.44

Fidus Investment Corporation presently has a consensus price target of $17.50, suggesting a potential upside of 5.11%. As a group, “Closed End Funds” companies have a potential upside of 292.91%. Given Fidus Investment Corporation’s competitors stronger consensus rating and higher probable upside, analysts clearly believe Fidus Investment Corporation has less favorable growth aspects than its competitors.

Summary

Fidus Investment Corporation competitors beat Fidus Investment Corporation on 8 of the 15 factors compared.

About Fidus Investment Corporation

Fidus Investment Corporation is a closed-end, non-diversified investment company. The Company provides customized debt and equity financing solutions to lower middle-market companies. The Company’s investment objective is to provide attractive risk-adjusted returns by generating both current income from its debt investments and capital appreciation from its equity-related investments. The Company typically invests in mezzanine debt, which includes senior subordinated notes and junior secured loans. The Company structures some of its debt investments as senior secured or unitranche loans. The Company’s equity securities typically consist of either a direct minority equity investment in common or preferred stock or membership/partnership interests of a portfolio company, or it may receive warrants to buy a minority equity interest in a portfolio company in connection with a debt investment. Its investment activities are managed by Fidus Investment Advisors, LLC, its investment advisor.

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