PennantPark Investment Corporation (NASDAQ: PNNT) is one of 556 publicly-traded companies in the “Closed End Funds” industry, but how does it weigh in compared to its rivals? We will compare PennantPark Investment Corporation to related companies based on the strength of its profitability, analyst recommendations, institutional ownership, valuation, risk, dividends and earnings.

Profitability

This table compares PennantPark Investment Corporation and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
PennantPark Investment Corporation 53.92% 9.11% 4.72%
PennantPark Investment Corporation Competitors 518.57% 7.92% 6.15%

Institutional & Insider Ownership

42.7% of PennantPark Investment Corporation shares are held by institutional investors. Comparatively, 23.2% of shares of all “Closed End Funds” companies are held by institutional investors. 1.9% of PennantPark Investment Corporation shares are held by insiders. Comparatively, 3.3% of shares of all “Closed End Funds” 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.

Dividends

PennantPark Investment Corporation pays an annual dividend of $0.72 per share and has a dividend yield of 9.5%. PennantPark Investment Corporation pays out 74.2% of its earnings in the form of a dividend. As a group, “Closed End Funds” companies pay a dividend yield of 9.0% and pay out 87.2% of their earnings in the form of a dividend. PennantPark Investment Corporation is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Volatility and Risk

PennantPark Investment Corporation has a beta of 1.25, suggesting that its stock price is 25% more volatile than the S&P 500. Comparatively, PennantPark Investment Corporation’s rivals have a beta of 0.56, suggesting that their average stock price is 44% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and recommmendations for PennantPark Investment Corporation and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PennantPark Investment Corporation 0 7 2 0 2.22
PennantPark Investment Corporation Competitors 341 1474 1499 26 2.36

PennantPark Investment Corporation currently has a consensus target price of $8.14, suggesting a potential upside of 7.35%. As a group, “Closed End Funds” companies have a potential upside of 43.62%. Given PennantPark Investment Corporation’s rivals stronger consensus rating and higher probable upside, analysts clearly believe PennantPark Investment Corporation has less favorable growth aspects than its rivals.

Valuation & Earnings

This table compares PennantPark Investment Corporation and its rivals revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
PennantPark Investment Corporation N/A N/A 7.82
PennantPark Investment Corporation Competitors $57.20 million $39.05 million -0.21

PennantPark Investment Corporation’s rivals have higher revenue and earnings than PennantPark Investment Corporation. PennantPark Investment Corporation is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Summary

PennantPark Investment Corporation rivals beat PennantPark Investment Corporation on 8 of the 14 factors compared.

About PennantPark Investment Corporation

PennantPark Investment Corporation is a closed-end, non-diversified investment company. The Company is a business development company. Its objectives are to generate both current income and capital appreciation while seeking to preserve capital through debt and equity investments primarily made to the United States middle-market companies in the form of senior secured debt, mezzanine debt and equity investments. The Company’s debt investments may generally range in maturity from 3 to 10 years and, are made to the United States and to a limited extent, non-United States corporations, partnerships and other business entities, which operate in various industries and geographical regions. In addition, it may invest up to approximately 30% of its portfolio in non-qualifying assets. It invests in sectors, such as aerospace and defense; energy/utilities; auto sector; environmental services, and beverage, among others. PennantPark Investment Advisers, LLC is the Company’s investment advisor.

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