PennantPark Floating Rate Capital (NASDAQ: PFLT) is one of 589 publicly-traded companies in the “Closed End Funds” industry, but how does it weigh in compared to its rivals? We will compare PennantPark Floating Rate Capital to similar companies based on the strength of its earnings, dividends, risk, valuation, analyst recommendations, profitability and institutional ownership.

Risk & Volatility

PennantPark Floating Rate Capital has a beta of 0.6, meaning that its stock price is 40% less volatile than the S&P 500. Comparatively, PennantPark Floating Rate Capital’s rivals have a beta of 0.56, meaning that their average stock price is 44% less volatile than the S&P 500.

Profitability

This table compares PennantPark Floating Rate Capital and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
PennantPark Floating Rate Capital 73.28% 7.26% 4.15%
PennantPark Floating Rate Capital Competitors -49.49% 6.76% 5.21%

Institutional and Insider Ownership

30.5% of PennantPark Floating Rate Capital shares are held by institutional investors. Comparatively, 24.0% of shares of all “Closed End Funds” companies are held by institutional investors. 1.2% of PennantPark Floating Rate Capital shares are held by company insiders. Comparatively, 5.1% of shares of all “Closed End Funds” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for PennantPark Floating Rate Capital and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PennantPark Floating Rate Capital 0 1 4 0 2.80
PennantPark Floating Rate Capital Competitors 223 1550 1896 31 2.47

PennantPark Floating Rate Capital currently has a consensus price target of $14.90, suggesting a potential upside of 6.81%. As a group, “Closed End Funds” companies have a potential upside of 47.68%. Given PennantPark Floating Rate Capital’s rivals higher possible upside, analysts plainly believe PennantPark Floating Rate Capital has less favorable growth aspects than its rivals.

Earnings and Valuation

This table compares PennantPark Floating Rate Capital and its rivals revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
PennantPark Floating Rate Capital $46.30 million $33.49 million 9.55
PennantPark Floating Rate Capital Competitors $238.79 million $43.51 million 219.52

PennantPark Floating Rate Capital’s rivals have higher revenue and earnings than PennantPark Floating Rate Capital. PennantPark Floating Rate Capital is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Dividends

PennantPark Floating Rate Capital pays an annual dividend of $1.14 per share and has a dividend yield of 8.2%. PennantPark Floating Rate Capital pays out 78.1% 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 8.6% and pay out 93.7% of their earnings in the form of a dividend.

Summary

PennantPark Floating Rate Capital rivals beat PennantPark Floating Rate Capital on 8 of the 15 factors compared.

About PennantPark Floating Rate Capital

PennantPark Floating Rate Capital Ltd. is a business development company. The Company is a closed-end, externally managed and non-diversified investment company. Its investment objectives are to generate current income and capital appreciation by investing primarily in floating rate loans and other investments made to the United States middle-market companies. It provides first lien secured debt and other opportunistic financings (senior notes, second lien, mezzanine, private high yield debt, and preferred and common stock) to middle market sponsors and companies. Its investments may include equity features, such as direct investments in the equity securities of borrowers or warrants or options to buy a minority interest in a portfolio company. It has investments in various sectors, including aerospace and defense; consumer services; healthcare and pharmaceuticals, and others. Its investment activities are managed by the investment advisor, PennantPark Investment Advisers, LLC.

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