Financial Review: Fidus Investment Corporation (FDUS) and The Competition
Fidus Investment Corporation (NASDAQ: FDUS) is one of 576 public companies in the “Closed End Funds” industry, but how does it weigh in compared to its peers? We will compare Fidus Investment Corporation to related companies based on the strength of its risk, analyst recommendations, institutional ownership, valuation, profitability, dividends and earnings.
Insider & Institutional Ownership
30.7% of Fidus Investment Corporation shares are held by institutional investors. Comparatively, 23.2% of shares of all “Closed End Funds” companies are held by institutional investors. 1.3% of Fidus Investment Corporation shares are held by insiders. Comparatively, 4.5% 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.
This table compares Fidus Investment Corporation and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Fidus Investment Corporation||62.46%||9.08%||5.56%|
|Fidus Investment Corporation Competitors||-47.95%||6.89%||5.31%|
This is a breakdown of current recommendations and price targets for Fidus Investment Corporation and its peers, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Fidus Investment Corporation||0||2||1||0||2.33|
|Fidus Investment Corporation Competitors||195||1199||1418||14||2.44|
Fidus Investment Corporation currently has a consensus target price of $17.50, indicating a potential upside of 6.58%. As a group, “Closed End Funds” companies have a potential upside of 46.02%. Given Fidus Investment Corporation’s peers stronger consensus rating and higher possible upside, analysts clearly believe Fidus Investment Corporation has less favorable growth aspects than its peers.
Valuation & Earnings
This table compares Fidus Investment Corporation and its peers gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Fidus Investment Corporation||N/A||N/A||8.51|
|Fidus Investment Corporation Competitors||$57.58 million||$38.86 million||0.03|
Fidus Investment Corporation’s peers have higher revenue and earnings than Fidus Investment Corporation. Fidus Investment Corporation 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.
Volatility & Risk
Fidus Investment Corporation has a beta of 1.12, meaning that its stock price is 12% more volatile than the S&P 500. Comparatively, Fidus Investment Corporation’s peers have a beta of 0.55, meaning that their average stock price is 45% less volatile than the S&P 500.
Fidus Investment Corporation pays an annual dividend of $1.56 per share and has a dividend yield of 9.5%. Fidus Investment Corporation pays out 80.8% 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 8.8% and pay out 87.0% of their earnings in the form of a dividend. Fidus Investment Corporation is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.
Fidus Investment Corporation beats its peers on 7 of the 13 factors compared.
Fidus Investment Corporation Company Profile
Fidus Investment Corporation is a closed-end, non-diversified investment company. The Company provides customized debt and equity financing solutions to lower middle-market companies. The Company’s investment objective is to provide attractive risk-adjusted returns by generating both current income from its debt investments and capital appreciation from its equity-related investments. The Company typically invests in mezzanine debt, which includes senior subordinated notes and junior secured loans. The Company structures some of its debt investments as senior secured or unitranche loans. The Company’s equity securities typically consist of either a direct minority equity investment in common or preferred stock or membership/partnership interests of a portfolio company, or it may receive warrants to buy a minority equity interest in a portfolio company in connection with a debt investment. Its investment activities are managed by Fidus Investment Advisors, LLC, its investment advisor.
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