Head-To-Head Contrast: Garrison Capital (NASDAQ:GARS) and Its Peers

Garrison Capital (NASDAQ: GARS) is one of 53 public companies in the “Investment Management & Fund Operators” industry, but how does it weigh in compared to its competitors? We will compare Garrison Capital to related businesses based on the strength of its institutional ownership, risk, valuation, dividends, analyst recommendations, profitability and earnings.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Garrison Capital and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Garrison Capital 0 5 1 0 2.17
Garrison Capital Competitors 292 1774 1903 59 2.43

Garrison Capital presently has a consensus target price of $10.33, suggesting a potential upside of 26.48%. As a group, “Investment Management & Fund Operators” companies have a potential upside of 7.67%. Given Garrison Capital’s higher possible upside, equities analysts plainly believe Garrison Capital is more favorable than its competitors.

Dividends

Garrison Capital pays an annual dividend of $1.12 per share and has a dividend yield of 13.7%. Garrison Capital pays out 339.4% 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, “Investment Management & Fund Operators” companies pay a dividend yield of 2.3% and pay out 45.1% of their earnings in the form of a dividend.

Valuation and Earnings

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

Gross Revenue Net Income Price/Earnings Ratio
Garrison Capital $42.95 million -$4.80 million 24.76
Garrison Capital Competitors $6.06 billion $896.42 million 1,046.90

Garrison Capital’s competitors have higher revenue and earnings than Garrison Capital. Garrison 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.

Risk & Volatility

Garrison Capital has a beta of 0.24, suggesting that its share price is 76% less volatile than the S&P 500. Comparatively, Garrison Capital’s competitors have a beta of 1.37, suggesting that their average share price is 37% more volatile than the S&P 500.

Institutional and Insider Ownership

24.2% of Garrison Capital shares are held by institutional investors. Comparatively, 62.4% of shares of all “Investment Management & Fund Operators” companies are held by institutional investors. 5.8% of Garrison Capital shares are held by insiders. Comparatively, 10.5% of shares of all “Investment Management & Fund Operators” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Garrison Capital and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Garrison Capital 14.66% 9.33% 4.49%
Garrison Capital Competitors -236.98% 0.79% 5.01%

Summary

Garrison Capital competitors beat Garrison Capital on 11 of the 15 factors compared.

Garrison Capital Company Profile

Garrison Capital Inc. is a managed, closed-end, non-diversified management investment company. The Company’s investment objective is to generate current income and capital appreciation by making investments primarily in debt securities and loans of the United States-based middle-market companies, which it defines as those having annual earnings before interest, taxes and depreciation, or EBITDA, of certain amount. It invests or provides direct lending in first lien senior secured loans, second lien senior secured loans, one-stop senior secured loans or unitranche loans, subordinated or mezzanine loans, unsecured consumer loans and to a lesser extent, selected equity co-investments in middle-market companies. The Company intends to generate risk-adjusted net returns by assembling a portfolio of investments. The Company’s investment advisor is Garrison Capital Advisers LLC.

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