PennantPark Floating Rate Capital (NASDAQ: PFLT) is one of 544 publicly-traded companies in the “Closed End Funds” industry, but how does it weigh in compared to its competitors? We will compare PennantPark Floating Rate Capital to similar companies based on the strength of its risk, valuation, earnings, institutional ownership, profitability, analyst recommendations and dividends.

Insider and Institutional Ownership

30.8% of PennantPark Floating Rate Capital shares are owned by institutional investors. Comparatively, 23.8% of shares of all “Closed End Funds” companies are owned by institutional investors. 1.2% of PennantPark Floating Rate Capital shares are owned by company insiders. Comparatively, 5.1% of shares of all “Closed End Funds” companies are owned by company 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.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for PennantPark Floating Rate Capital and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PennantPark Floating Rate Capital 0 1 4 0 2.80
PennantPark Floating Rate Capital Competitors 234 1571 1920 31 2.47

PennantPark Floating Rate Capital presently has a consensus price target of $14.90, indicating a potential upside of 5.15%. As a group, “Closed End Funds” companies have a potential upside of 47.59%. Given PennantPark Floating Rate Capital’s competitors higher probable upside, analysts clearly believe PennantPark Floating Rate Capital has less favorable growth aspects than its competitors.

Volatility & Risk

PennantPark Floating Rate Capital has a beta of 0.6, indicating that its share price is 40% less volatile than the S&P 500. Comparatively, PennantPark Floating Rate Capital’s competitors have a beta of 0.55, indicating that their average share price is 45% less volatile than the S&P 500.

Valuation and Earnings

This table compares PennantPark Floating Rate Capital and its competitors top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
PennantPark Floating Rate Capital $46.30 million $33.49 million 9.71
PennantPark Floating Rate Capital Competitors $239.02 million $43.51 million 269.93

PennantPark Floating Rate Capital’s competitors have higher revenue and earnings than PennantPark Floating Rate Capital. PennantPark Floating Rate Capital 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 PennantPark Floating Rate Capital and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
PennantPark Floating Rate Capital 73.28% 7.26% 4.15%
PennantPark Floating Rate Capital Competitors -21.48% 7.22% 5.55%

Dividends

PennantPark Floating Rate Capital pays an annual dividend of $1.14 per share and has a dividend yield of 8.0%. PennantPark Floating Rate Capital pays out 78.1% 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 8.2% and pay out 91.1% of their earnings in the form of a dividend.

Summary

PennantPark Floating Rate Capital competitors beat PennantPark Floating Rate Capital on 8 of the 15 factors compared.

About PennantPark Floating Rate Capital

PennantPark Floating Rate Capital Ltd. is a business development company. The Company is a closed-end, externally managed and non-diversified investment company. Its investment objectives are to generate current income and capital appreciation by investing primarily in floating rate loans and other investments made to the United States middle-market companies. It provides first lien secured debt and other opportunistic financings (senior notes, second lien, mezzanine, private high yield debt, and preferred and common stock) to middle market sponsors and companies. Its investments may include equity features, such as direct investments in the equity securities of borrowers or warrants or options to buy a minority interest in a portfolio company. It has investments in various sectors, including aerospace and defense; consumer services; healthcare and pharmaceuticals, and others. Its investment activities are managed by the investment advisor, PennantPark Investment Advisers, LLC.

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