Eagle Point Credit (NYSE: ECC) is one of 556 public companies in the “Closed End Funds” industry, but how does it weigh in compared to its peers? We will compare Eagle Point Credit to related businesses based on the strength of its earnings, valuation, dividends, institutional ownership, analyst recommendations, risk and profitability.

Insider & Institutional Ownership

58.3% of Eagle Point Credit shares are owned by institutional investors. Comparatively, 23.2% of shares of all “Closed End Funds” companies are owned by institutional investors. 0.7% of Eagle Point Credit shares are owned by insiders. Comparatively, 3.3% of shares of all “Closed End Funds” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Eagle Point Credit and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Eagle Point Credit 134.32% N/A N/A
Eagle Point Credit Competitors 518.10% 7.79% 6.00%

Analyst Ratings

This is a summary of current recommendations for Eagle Point Credit and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Eagle Point Credit 0 0 3 0 3.00
Eagle Point Credit Competitors 341 1474 1499 26 2.36

Eagle Point Credit presently has a consensus price target of $24.00, suggesting a potential upside of 16.11%. As a group, “Closed End Funds” companies have a potential upside of 41.46%. Given Eagle Point Credit’s peers higher probable upside, analysts clearly believe Eagle Point Credit has less favorable growth aspects than its peers.

Volatility and Risk

Eagle Point Credit has a beta of 0.33, indicating that its share price is 67% less volatile than the S&P 500. Comparatively, Eagle Point Credit’s peers have a beta of 0.56, indicating that their average share price is 44% less volatile than the S&P 500.

Dividends

Eagle Point Credit pays an annual dividend of $2.40 per share and has a dividend yield of 11.6%. Eagle Point Credit pays out 46.2% of its earnings in the form of a dividend. As a group, “Closed End Funds” companies pay a dividend yield of 9.0% and pay out 87.5% of their earnings in the form of a dividend. Eagle Point Credit is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Earnings and Valuation

This table compares Eagle Point Credit and its peers revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Eagle Point Credit N/A N/A 3.98
Eagle Point Credit Competitors $57.20 million $39.05 million -0.23

Eagle Point Credit’s peers have higher revenue and earnings than Eagle Point Credit. Eagle Point Credit is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Summary

Eagle Point Credit peers beat Eagle Point Credit on 8 of the 13 factors compared.

About Eagle Point Credit

Eagle Point Credit Company Inc. is a non-diversified, closed-end management investment company. The Company’s primary investment objective is to generate high current income, with a secondary objective to generate capital appreciation. The Company primarily invests in equity and junior debt tranches of collateralized loan obligations (CLOs) that are collateralized by a portfolio consisting primarily of the below investment grade United States senior secured loans. It may also invest in other securities and instruments related to these investments. The Company’s portfolio includes its investments in various industries, such as business equipment and services; healthcare; electronics/electrical; leisure goods/activities/movies; retailers (except food and drug); chemicals and plastics; telecommunications; financial intermediaries, and utilities. The Company’s advisor is Eagle Point Credit Management LLC.

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