Analyzing FS Investment Corporation (FSIC) & The Competition
FS Investment Corporation (NYSE: FSIC) is one of 555 public companies in the “Closed End Funds” industry, but how does it weigh in compared to its competitors? We will compare FS Investment Corporation to similar businesses based on the strength of its risk, dividends, profitability, analyst recommendations, earnings, valuation and institutional ownership.
Risk and Volatility
FS Investment Corporation has a beta of 0.96, meaning that its stock price is 4% less volatile than the S&P 500. Comparatively, FS Investment Corporation’s competitors have a beta of 0.56, meaning that their average stock price is 44% less volatile than the S&P 500.
Earnings & Valuation
This table compares FS Investment Corporation and its competitors top-line revenue, earnings per share and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|FS Investment Corporation||N/A||N/A||8.09|
|FS Investment Corporation Competitors||$57.20 million||$39.05 million||-0.16|
FS Investment Corporation’s competitors have higher revenue and earnings than FS Investment Corporation. FS 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.
FS Investment Corporation pays an annual dividend of $0.89 per share and has a dividend yield of 10.8%. FS Investment Corporation pays out 87.3% 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 9.3% and pay out 90.6% of their earnings in the form of a dividend. FS Investment Corporation is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.
Insider & Institutional Ownership
32.5% of FS Investment Corporation shares are held by institutional investors. Comparatively, 23.2% of shares of all “Closed End Funds” companies are held by institutional investors. 1.0% of FS Investment Corporation shares are held by insiders. Comparatively, 4.2% of shares of all “Closed End Funds” 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.
This table compares FS Investment Corporation and its competitors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|FS Investment Corporation||59.88%||8.92%||4.92%|
|FS Investment Corporation Competitors||518.10%||7.79%||6.00%|
This is a breakdown of current ratings and target prices for FS Investment Corporation and its competitors, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|FS Investment Corporation||0||4||0||0||2.00|
|FS Investment Corporation Competitors||341||1472||1498||26||2.36|
FS Investment Corporation presently has a consensus price target of $10.00, suggesting a potential upside of 21.21%. As a group, “Closed End Funds” companies have a potential upside of 43.17%. Given FS Investment Corporation’s competitors stronger consensus rating and higher possible upside, analysts plainly believe FS Investment Corporation has less favorable growth aspects than its competitors.
FS Investment Corporation competitors beat FS Investment Corporation on 8 of the 14 factors compared.
About FS Investment Corporation
FS Investment Corporation is an externally managed, non-diversified, closed-end management investment company. The Company’s investment objectives are to generate current income and long-term capital appreciation. Its portfolio consists primarily of investments in senior secured loans and second lien secured loans of the private United States middle market companies and subordinated loans of the private United States companies. It may purchase interests in loans or make other debt investments, including investments in senior secured bonds, through secondary market transactions in the over-the-counter market or directly from target companies as primary market or directly originated investments. It invests in a range of industries, including capital goods; consumer services; consumer durables and apparel; materials; commercial and professional services, and diversified financials. Its investment advisor is FB Income Advisor, LLC.
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