American Capital (NASDAQ: ACAS) is one of 53 public companies in the “Investment Management & Fund Operators” industry, but how does it contrast to its competitors? We will compare American Capital to similar companies based on the strength of its analyst recommendations, valuation, profitability, risk, earnings, dividends and institutional ownership.

Profitability

This table compares American Capital and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
American Capital 150.00% 12.58% 11.27%
American Capital Competitors -46.95% 10.51% 5.73%

Analyst Recommendations

This is a breakdown of recent recommendations for American Capital and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
American Capital 0 0 0 0 N/A
American Capital Competitors 357 1772 1791 62 2.39

As a group, “Investment Management & Fund Operators” companies have a potential upside of 5.89%. Given American Capital’s competitors higher possible upside, analysts plainly believe American Capital has less favorable growth aspects than its competitors.

Valuation and Earnings

This table compares American Capital and its competitors gross revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
American Capital N/A N/A -149.90
American Capital Competitors $3.00 billion $962.04 million 6.49

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

Insider and Institutional Ownership

65.7% of American Capital shares are owned by institutional investors. Comparatively, 62.1% of shares of all “Investment Management & Fund Operators” companies are owned by institutional investors. 9.2% of American Capital shares are owned by insiders. Comparatively, 10.4% of shares of all “Investment Management & Fund Operators” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Risk and Volatility

American Capital has a beta of 1, indicating that its stock price has a similar volatility profile to the S&P 500.Comparatively, American Capital’s competitors have a beta of 1.23, indicating that their average stock price is 23% more volatile than the S&P 500.

About American Capital

Acas LLC., formerly American Capital, Ltd. (American Capital) is a global asset manager and private equity firm. American Capital, both directly and through its asset management business, originates, underwrites and manages investments in middle market private equity, leveraged finance, real estate, energy and structured products. It primarily invests in senior and mezzanine debt and equity in buyouts of private companies sponsored by the Company (American Capital One Stop Buyouts) or sponsored by other private equity funds and provide capital directly to early-stage and mature private and small public companies (Sponsor Finance and Other Investments). It also invests in first and second lien floating rate loans to the United States-based companies (Senior Floating Rate Loans or SFRL) and structured finance investments (Structured Products), including collateralized loan obligation (CLO) securities and commercial mortgages, and commercial mortgage backed securities (CMBS).

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