Fifth Street Asset Management (NASDAQ: FSAM) is one of 61 publicly-traded companies in the “Investment Management” industry, but how does it compare to its rivals? We will compare Fifth Street Asset Management to related companies based on the strength of its dividends, profitability, risk, valuation, institutional ownership, earnings and analyst recommendations.

Valuation and Earnings

This table compares Fifth Street Asset Management and its rivals revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Fifth Street Asset Management $71.87 million $35.88 million -28.21
Fifth Street Asset Management Competitors $817.28 million $231.48 million -11.77

Fifth Street Asset Management’s rivals have higher revenue and earnings than Fifth Street Asset Management. Fifth Street Asset Management is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Institutional and Insider Ownership

8.6% of Fifth Street Asset Management shares are held by institutional investors. Comparatively, 47.8% of shares of all “Investment Management” companies are held by institutional investors. 86.0% of Fifth Street Asset Management shares are held by company insiders. Comparatively, 26.7% of shares of all “Investment Management” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations for Fifth Street Asset Management and its rivals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Fifth Street Asset Management 0 1 0 0 2.00
Fifth Street Asset Management Competitors 649 2072 2121 34 2.32

Fifth Street Asset Management presently has a consensus price target of $4.00, indicating a potential upside of 1.27%. As a group, “Investment Management” companies have a potential downside of 1.33%. Given Fifth Street Asset Management’s higher probable upside, equities analysts plainly believe Fifth Street Asset Management is more favorable than its rivals.

Risk and Volatility

Fifth Street Asset Management has a beta of 0.32, suggesting that its stock price is 68% less volatile than the S&P 500. Comparatively, Fifth Street Asset Management’s rivals have a beta of 1.42, suggesting that their average stock price is 42% more volatile than the S&P 500.

Profitability

This table compares Fifth Street Asset Management and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Fifth Street Asset Management -0.63% -399.09% 11.43%
Fifth Street Asset Management Competitors 29.76% 104.37% 27.63%

Dividends

Fifth Street Asset Management pays an annual dividend of $0.25 per share and has a dividend yield of 6.3%. Fifth Street Asset Management pays out -178.6% of its earnings in the form of a dividend. As a group, “Investment Management” companies pay a dividend yield of 3.3% and pay out 65.6% of their earnings in the form of a dividend. Fifth Street Asset Management is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Summary

Fifth Street Asset Management rivals beat Fifth Street Asset Management on 10 of the 15 factors compared.

Fifth Street Asset Management Company Profile

Fifth Street Asset Management Inc. is an alternative asset manager. The Company provides asset management services to its investment funds (the Fifth Street Funds or the funds), which consist of Fifth Street Finance Corp. (FSC) and Fifth Street Senior Floating Rate Corp. (FSFR), both publicly-traded business development companies (together, the BDCs). Its segment provides asset management services to the Fifth Street Funds. The Company conducts all of its operations through its subsidiaries, Fifth Street Management LLC (FSM), Fifth Street CLO Management LLC (CLO Management) and FSCO GP LLC (FSCO GP). The funds, managed by the Company, provide financing solutions to small and mid-sized companies across their capital structures, mainly in connection with investments by private equity sponsors. It provides credit solutions across the capital structure, including one-stop financing, unitranche debt, senior secured debt, mezzanine debt, equity co-investments and venture debt financing.

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