Critical Contrast: General Finance Corporation (GFN) & Its Rivals

General Finance Corporation (NASDAQ: GFN) is one of 99 publicly-traded companies in the “Business Support Services” industry, but how does it weigh in compared to its competitors? We will compare General Finance Corporation to related businesses based on the strength of its earnings, risk, analyst recommendations, dividends, institutional ownership, valuation and profitability.

Institutional & Insider Ownership

18.9% of General Finance Corporation shares are owned by institutional investors. Comparatively, 62.1% of shares of all “Business Support Services” companies are owned by institutional investors. 25.9% of General Finance Corporation shares are owned by company insiders. Comparatively, 12.6% of shares of all “Business Support Services” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations and price targets for General Finance Corporation and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
General Finance Corporation 0 1 2 0 2.67
General Finance Corporation Competitors 627 1860 2608 62 2.41

General Finance Corporation presently has a consensus price target of $7.60, suggesting a potential upside of 40.74%. As a group, “Business Support Services” companies have a potential downside of 7.02%. Given General Finance Corporation’s stronger consensus rating and higher possible upside, equities analysts clearly believe General Finance Corporation is more favorable than its competitors.

Profitability

This table compares General Finance Corporation and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
General Finance Corporation -0.90% -1.37% -0.37%
General Finance Corporation Competitors -53.66% -169.89% 0.50%

Valuation and Earnings

This table compares General Finance Corporation and its competitors top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
General Finance Corporation $276.93 million $59.20 million -21.60
General Finance Corporation Competitors $1.10 billion $177.93 million 23.49

General Finance Corporation’s competitors have higher revenue and earnings than General Finance Corporation. General Finance Corporation 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.

Volatility & Risk

General Finance Corporation has a beta of 1.21, indicating that its stock price is 21% more volatile than the S&P 500. Comparatively, General Finance Corporation’s competitors have a beta of 1.13, indicating that their average stock price is 13% more volatile than the S&P 500.

Summary

General Finance Corporation beats its competitors on 7 of the 12 factors compared.

About General Finance Corporation

General Finance Corporation is a specialty rental services company. The Company offers a range of portable storage units, including its core 20-feet and 40-feet steel containers, office container, mobile office and modular space products and steel tanks. It has two geographic areas that include its four operating segments: the Asia-Pacific area, consisting of the leasing operations of Royal Wolf Holdings Limited and its Australian and New Zealand subsidiaries (Royal Wolf), and North America, consisting of the combined leasing operations of Pac-Van, Inc. and its Canadian subsidiary, PV Acquisition Corp. (Pac-Van) and Lone Star Tank Rental Inc. (Lone Star), and the manufacturing operations of GFN Manufacturing Corporation and its subsidiary, Southern Frac, LLC (Southern Frac). As of June 30, 2016, the Company provided its storage solutions to over 41,000 customers across a range of industries, including commercial, construction, retail, transportation, education and others.

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