Head to Head Survey: FS Investment Corporation (FSIC) and its Competitors
FS Investment Corporation (NYSE: FSIC) is one of 553 publicly-traded companies in the “Closed End Funds” industry, but how does it weigh in compared to its peers? We will compare FS Investment Corporation to similar companies based off the strength of its valuation, risk, analyst recommendations, profitability, dividends, earnings and institutional ownership.
Risk and Volatility
FS Investment Corporation has a beta of 0.96, suggesting that its share price is 4% less volatile than the S&P 500. Comparatively, FS Investment Corporation’s peers have a beta of 0.56, suggesting that their average share price is 44% less volatile than the S&P 500.
Insider and Institutional Ownership
32.5% of FS Investment Corporation shares are owned by institutional investors. Comparatively, 23.2% of shares of all “Closed End Funds” companies are owned by institutional investors. 1.0% of FS Investment Corporation shares are owned by company insiders. Comparatively, 3.3% of shares of all “Closed End Funds” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
This is a summary of recent recommendations and price targets for FS Investment Corporation and its peers, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|FS Investment Corporation||0||4||0||0||2.00|
|FS Investment Corporation Competitors||339||1470||1497||26||2.36|
FS Investment Corporation presently has a consensus target price of $10.00, suggesting a potential upside of 21.21%. All “Closed End Funds” companies have a potential upside of 43.58%. Given FS Investment Corporation’s peers stronger consensus rating and higher possible upside, analysts plainly believe FS Investment Corporation has less favorable growth aspects than its peers.
Valuation and Earnings
This table compares FS Investment Corporation and its peers gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|FS Investment Corporation||N/A||N/A||8.09|
|FS Investment Corporation Competitors||$57.20 million||$39.05 million||0.17|
FS Investment Corporation’s peers have higher revenue and earnings than FS Investment Corporation. FS Investment Corporation is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently the more expensive than other companies in its industry.
FS Investment Corporation pays an annual dividend of $0.89 per share and has a dividend yield of 10.8%. FS Investment Corporation pays out 87.3% 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 9.4% and pay out 92.9% of their earnings in the form of a dividend. FS Investment Corporation is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.
This table compares FS Investment Corporation and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|FS Investment Corporation||59.88%||8.92%||4.92%|
|FS Investment Corporation Competitors||-130.81%||7.63%||5.84%|
FS Investment Corporation peers beat FS Investment Corporation on 7 of the 13 factors compared.
FS Investment Corporation Company Profile
FS Investment Corporation is an externally managed, non-diversified, closed-end management investment company. The Company’s investment objectives are to generate current income and long-term capital appreciation. Its portfolio consists primarily of investments in senior secured loans and second lien secured loans of the private United States middle market companies and subordinated loans of the private United States companies. It may purchase interests in loans or make other debt investments, including investments in senior secured bonds, through secondary market transactions in the over-the-counter market or directly from target companies as primary market or directly originated investments. It invests in a range of industries, including capital goods; consumer services; consumer durables and apparel; materials; commercial and professional services, and diversified financials. Its investment advisor is FB Income Advisor, LLC.
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