New Mountain Finance Corporation (NYSE: NMFC) is one of 576 public companies in the “Closed End Funds” industry, but how does it compare to its peers? We will compare New Mountain Finance Corporation to related companies based on the strength of its valuation, profitability, earnings, risk, institutional ownership, analyst recommendations and dividends.

Profitability

This table compares New Mountain Finance Corporation and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
New Mountain Finance Corporation 65.22% 10.15% 5.38%
New Mountain Finance Corporation Competitors -47.61% 6.90% 5.32%

Institutional & Insider Ownership

40.9% of New Mountain Finance Corporation shares are owned by institutional investors. Comparatively, 23.2% of shares of all “Closed End Funds” companies are owned by institutional investors. 9.7% of New Mountain Finance Corporation shares are owned by insiders. Comparatively, 4.5% of shares of all “Closed End Funds” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Risk and Volatility

New Mountain Finance Corporation has a beta of 0.59, indicating that its share price is 41% less volatile than the S&P 500. Comparatively, New Mountain Finance Corporation’s peers have a beta of 0.55, indicating that their average share price is 45% less volatile than the S&P 500.

Dividends

New Mountain Finance Corporation pays an annual dividend of $1.36 per share and has a dividend yield of 9.5%. New Mountain Finance Corporation pays out 86.6% 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 8.7% and pay out 85.9% of their earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of current recommendations for New Mountain Finance Corporation and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
New Mountain Finance Corporation 0 1 0 0 2.00
New Mountain Finance Corporation Competitors 197 1203 1421 14 2.44

New Mountain Finance Corporation presently has a consensus price target of $15.00, suggesting a potential upside of 5.26%. As a group, “Closed End Funds” companies have a potential upside of 47.25%. Given New Mountain Finance Corporation’s peers stronger consensus rating and higher possible upside, analysts plainly believe New Mountain Finance Corporation has less favorable growth aspects than its peers.

Valuation & Earnings

This table compares New Mountain Finance Corporation and its peers revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
New Mountain Finance Corporation N/A N/A 9.08
New Mountain Finance Corporation Competitors $57.58 million $38.88 million 0.03

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

Summary

New Mountain Finance Corporation beats its peers on 7 of the 13 factors compared.

New Mountain Finance Corporation Company Profile

New Mountain Finance Corporation is a closed-end, non-diversified management investment company. The Company’s investment objective is to generate current income and capital appreciation through the sourcing and origination of debt securities at all levels of the capital structure, including first and second lien debt, notes, bonds and mezzanine securities. Its investments may also include equity interests, such as preferred stock, common stock, warrants or options received in connection with its debt investments or may include a direct investment in the equity of private companies. The Company makes investments through both primary originations and open-market secondary purchases. Its investment portfolio includes its investments in various industries, such as business services, software, consumer services, investment fund, education, energy, healthcare services, distribution and logistics, and Federal services. Its investment advisor is New Mountain Finance Advisers BDC, L.L.C.

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