Eagle Point Credit (ECC) versus its Rivals Financial Analysis
Eagle Point Credit (NYSE: ECC) is one of 553 public companies in the “Closed End Funds” industry, but how does it weigh in compared to its competitors? We will compare Eagle Point Credit to similar businesses based off the strength of its earnings, risk, dividends, analyst recommendations, institutional ownership, profitability and valuation.
Risk & Volatility
Eagle Point Credit has a beta of 0.33, meaning that its stock price is 67% less volatile than the S&P 500. Comparatively, Eagle Point Credit’s competitors have a beta of 0.56, meaning that their average stock price is 44% less volatile than the S&P 500.
Eagle Point Credit pays an annual dividend of $2.40 per share and has a dividend yield of 11.5%. Eagle Point Credit pays out 46.2% of its earnings in the form of a dividend. As a group, “Closed End Funds” companies pay a dividend yield of 9.4% and pay out 92.9% of their earnings in the form of a dividend. Eagle Point Credit is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.
Insider and Institutional Ownership
58.3% of Eagle Point Credit shares are owned by institutional investors. Comparatively, 23.2% of shares of all “Closed End Funds” companies are owned by institutional investors. 0.7% of Eagle Point Credit shares are owned by insiders. Comparatively, 3.3% 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 stock is poised for long-term growth.
This table compares Eagle Point Credit and its competitors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Eagle Point Credit||134.32%||N/A||N/A|
|Eagle Point Credit Competitors||-130.81%||7.63%||5.84%|
Earnings and Valuation
This table compares Eagle Point Credit and its competitors gross revenue, earnings per share and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Eagle Point Credit||N/A||N/A||4.02|
|Eagle Point Credit Competitors||$57.20 million||$39.05 million||0.17|
Eagle Point Credit’s competitors have higher revenue and earnings than Eagle Point Credit. Eagle Point Credit is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently the more expensive than other companies in its industry.
This is a breakdown of current ratings for Eagle Point Credit and its competitors, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Eagle Point Credit||0||0||3||0||3.00|
|Eagle Point Credit Competitors||339||1470||1497||26||2.36|
Eagle Point Credit presently has a consensus price target of $24.00, suggesting a potential upside of 14.89%. All “Closed End Funds” companies have a potential upside of 43.74%. Given Eagle Point Credit’s competitors higher possible upside, analysts plainly believe Eagle Point Credit has less favorable growth aspects than its competitors.
Eagle Point Credit competitors beat Eagle Point Credit on 7 of the 13 factors compared.
Eagle Point Credit Company Profile
Eagle Point Credit Company Inc. is a non-diversified, closed-end management investment company. The Company’s primary investment objective is to generate high current income, with a secondary objective to generate capital appreciation. The Company primarily invests in equity and junior debt tranches of collateralized loan obligations (CLOs) that are collateralized by a portfolio consisting primarily of the below investment grade United States senior secured loans. It may also invest in other securities and instruments related to these investments. The Company’s portfolio includes its investments in various industries, such as business equipment and services; healthcare; electronics/electrical; leisure goods/activities/movies; retailers (except food and drug); chemicals and plastics; telecommunications; financial intermediaries, and utilities. The Company’s advisor is Eagle Point Credit Management LLC.
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