Solar Senior Capital (NASDAQ: SUNS) is one of 571 public companies in the “Closed End Funds” industry, but how does it weigh in compared to its peers? We will compare Solar Senior Capital to related companies based on the strength of its risk, analyst recommendations, institutional ownership, valuation, profitability, dividends and earnings.

Insider & Institutional Ownership

32.8% of Solar Senior Capital shares are held by institutional investors. Comparatively, 23.2% of shares of all “Closed End Funds” companies are held by institutional investors. 5.6% of Solar Senior Capital shares are held by insiders. Comparatively, 3.5% of shares of all “Closed End Funds” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Solar Senior Capital and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Solar Senior Capital 76.07% 7.98% 4.22%
Solar Senior Capital Competitors -51.11% 6.07% 4.66%

Dividends

Solar Senior Capital pays an annual dividend of $1.41 per share and has a dividend yield of 8.0%. Solar Senior Capital pays out 94.6% 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 8.7% and pay out 87.0% of their earnings in the form of a dividend. Solar Senior Capital lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Solar Senior Capital and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Solar Senior Capital 0 1 2 0 2.67
Solar Senior Capital Competitors 192 1181 1412 13 2.45

Solar Senior Capital currently has a consensus target price of $17.17, indicating a potential downside of 2.35%. As a group, “Closed End Funds” companies have a potential upside of 39.65%. Given Solar Senior Capital’s peers higher possible upside, analysts clearly believe Solar Senior Capital has less favorable growth aspects than its peers.

Volatility & Risk

Solar Senior Capital has a beta of 0.63, meaning that its stock price is 37% less volatile than the S&P 500. Comparatively, Solar Senior Capital’s peers have a beta of 0.55, meaning that their average stock price is 45% less volatile than the S&P 500.

Earnings and Valuation

This table compares Solar Senior Capital and its peers top-line revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Solar Senior Capital N/A N/A 11.80
Solar Senior Capital Competitors $57.58 million $38.86 million -0.16

Solar Senior Capital’s peers have higher revenue and earnings than Solar Senior Capital. Solar Senior Capital 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

Solar Senior Capital beats its peers on 7 of the 13 factors compared.

Solar Senior Capital Company Profile

Solar Senior Capital Ltd. is a closed-end, externally managed, non-diversified management investment company. The Company’s investment objective is to seek to maximize current income consistent with the preservation of capital. The Company seeks to achieve its investment objective by directly and indirectly investing in senior loans, including first lien, unitranche, and second lien debt instruments, made to private middle-market companies whose debt is rated below investment grade, which it refers to collectively as senior loans. It may also invest in debt of public companies that are thinly traded or in equity securities. Under normal market conditions, at least 80% of the value of its net assets (including the amount of any borrowings for investment purposes) will be invested in senior loans. It invests in privately held the United States middle-market companies. Its investment activities are managed by Solar Capital Partners, LLC (Solar Capital Partners or the Investment Advisor).

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