Capitala Finance Corp. (CPTA) & Its Competitors Head to Head Analysis
Capitala Finance Corp. (NASDAQ: CPTA) is one of 576 public companies in the “Closed End Funds” industry, but how does it compare to its peers? We will compare Capitala Finance Corp. to related businesses based on the strength of its analyst recommendations, risk, institutional ownership, profitability, earnings, valuation and dividends.
This is a breakdown of recent ratings and recommmendations for Capitala Finance Corp. and its peers, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Capitala Finance Corp.||0||4||3||0||2.43|
|Capitala Finance Corp. Competitors||198||1209||1423||14||2.44|
Capitala Finance Corp. currently has a consensus target price of $14.92, indicating a potential upside of 79.29%. As a group, “Closed End Funds” companies have a potential upside of 48.79%. Given Capitala Finance Corp.’s higher possible upside, research analysts clearly believe Capitala Finance Corp. is more favorable than its peers.
This table compares Capitala Finance Corp. and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Capitala Finance Corp.||8.91%||8.55%||3.66%|
|Capitala Finance Corp. Competitors||-49.31%||6.82%||5.25%|
Valuation and Earnings
This table compares Capitala Finance Corp. and its peers top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Capitala Finance Corp.||N/A||N/A||24.47|
|Capitala Finance Corp. Competitors||$57.16 million||$38.88 million||0.27|
Capitala Finance Corp.’s peers have higher revenue and earnings than Capitala Finance Corp.. Capitala Finance Corp. 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.
Capitala Finance Corp. pays an annual dividend of $1.00 per share and has a dividend yield of 12.0%. Capitala Finance Corp. pays out 294.1% 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 8.8% and pay out 86.0% of their earnings in the form of a dividend.
Volatility and Risk
Capitala Finance Corp. has a beta of 1.11, suggesting that its stock price is 11% more volatile than the S&P 500. Comparatively, Capitala Finance Corp.’s peers have a beta of 0.55, suggesting that their average stock price is 45% less volatile than the S&P 500.
Insider and Institutional Ownership
28.5% of Capitala Finance Corp. shares are owned by institutional investors. Comparatively, 23.2% of shares of all “Closed End Funds” companies are owned by institutional investors. 8.4% of Capitala Finance Corp. shares are owned by company insiders. Comparatively, 4.5% of shares of all “Closed End Funds” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Capitala Finance Corp. beats its peers on 8 of the 14 factors compared.
About Capitala Finance Corp.
Capitala Finance Corp. is an externally managed non-diversified, closed-end management investment company. The Company’s investment objective is to generate both current income and capital appreciation through debt and equity investments. Both directly and through its subsidiaries that are licensed by the United States Small Business Administration (SBA), the Company offers financing to business owners, management teams and financial sponsors for change of ownership transactions, recapitalizations, strategic acquisitions, business expansion and other growth initiatives. The Company provides capital to lower and traditional middle-market companies in the United States, with a non-exclusive emphasis on the Southeast, Southwest and Mid-Atlantic regions. The Company invests in first lien, second lien and subordinated loans. The Company’s investment advisor is Capitala Investment Advisors, LLC.
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