Head-To-Head Review: General Finance (GFN) and Its Peers
General Finance (NASDAQ: GFN) is one of 99 publicly-traded companies in the “Business Support Services” industry, but how does it compare to its peers? We will compare General Finance to related companies based on the strength of its analyst recommendations, valuation, risk, profitability, dividends, institutional ownership and earnings.
Volatility and Risk
General Finance has a beta of 1.21, suggesting that its share price is 21% more volatile than the S&P 500. Comparatively, General Finance’s peers have a beta of 1.13, suggesting that their average share price is 13% more volatile than the S&P 500.
This is a breakdown of current ratings and target prices for General Finance and its peers, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|General Finance Competitors||627||1860||2609||62||2.41|
General Finance presently has a consensus price target of $7.60, indicating a potential upside of 40.74%. As a group, “Business Support Services” companies have a potential downside of 7.02%. Given General Finance’s stronger consensus rating and higher probable upside, research analysts plainly believe General Finance is more favorable than its peers.
This table compares General Finance and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|General Finance Competitors||-53.64%||-170.03%||0.49%|
Valuation and Earnings
This table compares General Finance and its peers gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|General Finance||$276.93 million||$59.20 million||-21.60|
|General Finance Competitors||$1.10 billion||$177.93 million||23.49|
General Finance’s peers have higher revenue and earnings than General Finance. General Finance is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.
Institutional & Insider Ownership
18.9% of General Finance shares are held by institutional investors. Comparatively, 62.1% of shares of all “Business Support Services” companies are held by institutional investors. 25.9% of General Finance shares are held by company insiders. Comparatively, 12.6% of shares of all “Business Support Services” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
General Finance beats its peers on 7 of the 12 factors compared.
About General Finance
General Finance Corporation is a specialty rental services company. The Company offers a range of portable storage units, including its core 20-feet and 40-feet steel containers, office container, mobile office and modular space products and steel tanks. It has two geographic areas that include its four operating segments: the Asia-Pacific area, consisting of the leasing operations of Royal Wolf Holdings Limited and its Australian and New Zealand subsidiaries (Royal Wolf), and North America, consisting of the combined leasing operations of Pac-Van, Inc. and its Canadian subsidiary, PV Acquisition Corp. (Pac-Van) and Lone Star Tank Rental Inc. (Lone Star), and the manufacturing operations of GFN Manufacturing Corporation and its subsidiary, Southern Frac, LLC (Southern Frac). As of June 30, 2016, the Company provided its storage solutions to over 41,000 customers across a range of industries, including commercial, construction, retail, transportation, education and others.
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