Medley Capital Corporation (NYSE: MCC) is one of 557 publicly-traded companies in the “Closed End Funds” industry, but how does it contrast to its peers? We will compare Medley Capital Corporation to similar businesses based on the strength of its valuation, analyst recommendations, institutional ownership, profitability, earnings, risk and dividends.

Profitability

This table compares Medley Capital Corporation and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Medley Capital Corporation -6.07% 8.04% 3.92%
Medley Capital Corporation Competitors 514.68% 7.98% 6.20%

Dividends

Medley Capital Corporation pays an annual dividend of $0.64 per share and has a dividend yield of 11.0%. Medley Capital Corporation pays out -640.0% 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 87.5% of their earnings in the form of a dividend. Medley Capital Corporation is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Medley Capital Corporation and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Medley Capital Corporation 0 5 0 0 2.00
Medley Capital Corporation Competitors 342 1476 1499 26 2.36

Medley Capital Corporation currently has a consensus price target of $7.00, suggesting a potential upside of 20.48%. As a group, “Closed End Funds” companies have a potential upside of 40.13%. Given Medley Capital Corporation’s peers stronger consensus rating and higher probable upside, analysts plainly believe Medley Capital Corporation has less favorable growth aspects than its peers.

Insider & Institutional Ownership

29.6% of Medley Capital Corporation shares are owned by institutional investors. Comparatively, 23.2% of shares of all “Closed End Funds” companies are owned by institutional investors. 8.7% of Medley Capital Corporation 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 company is poised for long-term growth.

Risk and Volatility

Medley Capital Corporation has a beta of 1.2, suggesting that its stock price is 20% more volatile than the S&P 500. Comparatively, Medley Capital Corporation’s peers have a beta of 0.56, suggesting that their average stock price is 44% less volatile than the S&P 500.

Earnings and Valuation

This table compares Medley Capital Corporation and its peers top-line revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Medley Capital Corporation N/A N/A -58.10
Medley Capital Corporation Competitors $57.20 million $39.05 million -0.22

Medley Capital Corporation’s peers have higher revenue and earnings than Medley Capital Corporation. Medley Capital Corporation 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.

Medley Capital Corporation Company Profile

Medley Capital Corporation is a non-diversified closed-end management investment company. The Company’s investment objective is to generate current income and capital appreciation by lending directly to privately-held middle market companies, primarily through directly originated transactions to help these companies expand their business, refinance and make acquisitions. Its investment portfolio includes senior secured first lien term loans, senior secured second lien term loans, unitranche, senior secured first lien notes, subordinated notes and warrants and minority equity securities. It may invest up to 100% of its assets in securities acquired directly from issuers in privately negotiated transactions. Its portfolio of investments includes industries, including banking, finance, insurance and real estate; construction and building; healthcare and pharmaceuticals; beverage and food, and telecommunications. MCC Advisors LLC is the Company’s investment advisor.

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