Fidus Investment Corporation (NASDAQ: FDUS) is one of 586 publicly-traded companies in the “Closed End Funds” industry, but how does it compare to its rivals? We will compare Fidus Investment Corporation to related businesses based on the strength of its valuation, institutional ownership, profitability, risk, dividends, analyst recommendations and earnings.
Volatility & Risk
Fidus Investment Corporation has a beta of 1.14, suggesting that its stock price is 14% more volatile than the S&P 500. Comparatively, Fidus Investment Corporation’s rivals have a beta of 0.55, suggesting that their average stock price is 45% less volatile than the S&P 500.
This is a summary of recent ratings and target prices for Fidus Investment Corporation and its rivals, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Fidus Investment Corporation||0||2||1||0||2.33|
|Fidus Investment Corporation Competitors||202||1230||1449||15||2.44|
Fidus Investment Corporation presently has a consensus target price of $17.50, suggesting a potential upside of 6.84%. As a group, “Closed End Funds” companies have a potential upside of 111.19%. Given Fidus Investment Corporation’s rivals stronger consensus rating and higher possible upside, analysts clearly believe Fidus Investment Corporation has less favorable growth aspects than its rivals.
Institutional & Insider Ownership
30.7% of Fidus Investment Corporation shares are owned by institutional investors. Comparatively, 23.2% of shares of all “Closed End Funds” companies are owned by institutional investors. 1.3% of Fidus Investment Corporation shares are owned by insiders. Comparatively, 3.5% of shares of all “Closed End Funds” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Fidus Investment Corporation pays an annual dividend of $1.56 per share and has a dividend yield of 9.5%. Fidus Investment Corporation pays out 79.2% 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 8.9% and pay out 88.3% of their earnings in the form of a dividend. Fidus Investment Corporation is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.
This table compares Fidus Investment Corporation and its rivals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Fidus Investment Corporation||64.21%||9.34%||5.82%|
|Fidus Investment Corporation Competitors||-49.63%||6.82%||5.25%|
Valuation and Earnings
This table compares Fidus Investment Corporation and its rivals top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||NetIncome||Price/Earnings Ratio|
|Fidus Investment Corporation||$60.23 million||$41.57 million||8.31|
|Fidus Investment Corporation Competitors||$118.53 million||$49.80 million||103.18|
Fidus Investment Corporation’s rivals have higher revenue and earnings than Fidus Investment Corporation. Fidus Investment Corporation is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.
Fidus Investment Corporation rivals beat Fidus Investment Corporation on 8 of the 15 factors compared.
Fidus Investment Corporation Company Profile
Fidus Investment Corporation is a closed-end, non-diversified investment company. The Company provides customized debt and equity financing solutions to lower middle-market companies. The Company’s investment objective is to provide attractive risk-adjusted returns by generating both current income from its debt investments and capital appreciation from its equity-related investments. The Company typically invests in mezzanine debt, which includes senior subordinated notes and junior secured loans. The Company structures some of its debt investments as senior secured or unitranche loans. The Company’s equity securities typically consist of either a direct minority equity investment in common or preferred stock or membership/partnership interests of a portfolio company, or it may receive warrants to buy a minority equity interest in a portfolio company in connection with a debt investment. Its investment activities are managed by Fidus Investment Advisors, LLC, its investment advisor.
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