Jernigan Capital (JCAP) and The Competition Critical Analysis

Jernigan Capital (NASDAQ:JCAP) is one of 120 publicly-traded companies in the “Consumer Finance” industry, but how does it contrast to its rivals? We will compare Jernigan Capital to related businesses based on the strength of its risk, dividends, earnings, valuation, institutional ownership, analyst recommendations and profitability.

Valuation & Earnings

This table compares Jernigan Capital and its rivals revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Jernigan Capital	$613.29 million	$187.96 million	8.20
Jernigan Capital Competitors	$3.61 billion	$385.17 million	5.88

Jernigan Capital’s rivals have higher revenue and earnings than Jernigan Capital. Jernigan Capital is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Jernigan Capital and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Jernigan Capital	23.50%	35.87%	8.16%
Jernigan Capital Competitors	9.92%	-15.66%	2.14%

Risk and Volatility

Jernigan Capital has a beta of -0.05, suggesting that its share price is 105% less volatile than the S&P 500. Comparatively, Jernigan Capital’s rivals have a beta of 1.26, suggesting that their average share price is 26% more volatile than the S&P 500.

Dividends

Jernigan Capital pays an annual dividend of $0.96 per share and has a dividend yield of 4.8%. Jernigan Capital pays out 39.2% of its earnings in the form of a dividend. As a group, “Consumer Finance” companies pay a dividend yield of 6.2% and pay out 34.2% of their earnings in the form of a dividend. Jernigan Capital lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Jernigan Capital and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Jernigan Capital	0	2	4	1	2.86
Jernigan Capital Competitors	887	3343	5269	274	2.50

Jernigan Capital currently has a consensus target price of $27.50, indicating a potential upside of 36.95%. As a group, “Consumer Finance” companies have a potential upside of 22.19%. Given Jernigan Capital’s stronger consensus rating and higher probable upside, research analysts clearly believe Jernigan Capital is more favorable than its rivals.

Insider and Institutional Ownership

46.0% of shares of all “Consumer Finance” companies are owned by institutional investors. 8.3% of Jernigan Capital shares are owned by company insiders. Comparatively, 22.1% of shares of all “Consumer Finance” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Jernigan Capital beats its rivals on 8 of the 15 factors compared.

About Jernigan Capital

Jernigan Capital is a New York Stock Exchange-listed real estate investment trust (NYSE: JCAP) that provides debt and equity capital to private developers, owners and operators of self-storage facilities with a view to eventual outright ownership of facilities the Company finances. The Company's mission is to maximize shareholder value by accumulating a multi-billion dollar investment portfolio consisting of the newest, most attractive and best located self-storage facilities in the United States through a talented and experienced team demonstrating the highest levels of integrity, dedication, excellence and community.