American Capital (NASDAQ: ACAS) is one of 54 public companies in the “Investment Management & Fund Operators” industry, but how does it contrast to its peers? We will compare American Capital to similar businesses based on the strength of its dividends, profitability, risk, analyst recommendations, valuation, earnings and institutional ownership.

Insider & Institutional Ownership

65.7% of American Capital shares are held by institutional investors. Comparatively, 62.0% of shares of all “Investment Management & Fund Operators” companies are held by institutional investors. 9.2% of American Capital shares are held by company insiders. Comparatively, 10.5% of shares of all “Investment Management & Fund Operators” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations for American Capital and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
American Capital 0 0 0 0 N/A
American Capital Competitors 358 1789 1806 63 2.39

As a group, “Investment Management & Fund Operators” companies have a potential upside of 6.69%. Given American Capital’s peers higher probable upside, analysts plainly believe American Capital has less favorable growth aspects than its peers.

Earnings & Valuation

This table compares American Capital and its peers gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
American Capital N/A N/A -149.90
American Capital Competitors $2.88 billion $924.31 million 6.81

American Capital’s peers have higher revenue and earnings than American Capital. American Capital 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.

Profitability

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

Net Margins Return on Equity Return on Assets
American Capital 150.00% 12.58% 11.27%
American Capital Competitors -44.72% 7.59% 5.17%

Volatility & Risk

American Capital has a beta of 1, meaning that its stock price has a similar volatility profile to the S&P 500.Comparatively, American Capital’s peers have a beta of 1.23, meaning that their average stock price is 23% more volatile than the S&P 500.

American Capital Company Profile

Acas LLC., formerly American Capital, Ltd. (American Capital) is a global asset manager and private equity firm. American Capital, both directly and through its asset management business, originates, underwrites and manages investments in middle market private equity, leveraged finance, real estate, energy and structured products. It primarily invests in senior and mezzanine debt and equity in buyouts of private companies sponsored by the Company (American Capital One Stop Buyouts) or sponsored by other private equity funds and provide capital directly to early-stage and mature private and small public companies (Sponsor Finance and Other Investments). It also invests in first and second lien floating rate loans to the United States-based companies (Senior Floating Rate Loans or SFRL) and structured finance investments (Structured Products), including collateralized loan obligation (CLO) securities and commercial mortgages, and commercial mortgage backed securities (CMBS).

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