Fifth Street Asset Management (OTCMKTS: FSAM) is one of 57 public companies in the “Investment Management” industry, but how does it weigh in compared to its competitors? We will compare Fifth Street Asset Management to similar businesses based on the strength of its earnings, risk, dividends, analyst recommendations, institutional ownership, profitability and valuation.

Insider and Institutional Ownership

8.6% of Fifth Street Asset Management shares are owned by institutional investors. Comparatively, 47.6% of shares of all “Investment Management” companies are owned by institutional investors. 85.4% of Fifth Street Asset Management shares are owned by insiders. Comparatively, 26.7% of shares of all “Investment Management” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Dividends

Fifth Street Asset Management pays an annual dividend of $0.25 per share and has a dividend yield of 6.2%. Fifth Street Asset Management pays out -39.7% of its earnings in the form of a dividend. As a group, “Investment Management” companies pay a dividend yield of 3.6% and pay out 68.8% of their earnings in the form of a dividend. Fifth Street Asset Management is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a breakdown of current ratings for Fifth Street Asset Management and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Fifth Street Asset Management 0 0 0 0 N/A
Fifth Street Asset Management Competitors 662 2109 2160 35 2.32

As a group, “Investment Management” companies have a potential downside of 0.70%. Given Fifth Street Asset Management’s competitors higher possible upside, analysts plainly believe Fifth Street Asset Management has less favorable growth aspects than its competitors.

Earnings & Valuation

This table compares Fifth Street Asset Management and its competitors gross revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Fifth Street Asset Management $82.55 million -$1.53 million -6.43
Fifth Street Asset Management Competitors $989.97 million $159.22 million 924.30

Fifth Street Asset Management’s competitors 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 competitors, indicating that it is currently more affordable than other companies in its industry.

Profitability

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

Net Margins Return on Equity Return on Assets
Fifth Street Asset Management -20.92% -399.09% -2.71%
Fifth Street Asset Management Competitors 26.04% 113.36% 26.25%

Risk & Volatility

Fifth Street Asset Management has a beta of 0.35, meaning that its stock price is 65% less volatile than the S&P 500. Comparatively, Fifth Street Asset Management’s competitors have a beta of 1.44, meaning that their average stock price is 44% more volatile than the S&P 500.

Summary

Fifth Street Asset Management competitors beat Fifth Street Asset Management on 9 of the 12 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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