Jernigan Capital (JCAP) and The Competition Critical Comparison

Jernigan Capital (NASDAQ:JCAP) is one of 120 public companies in the “Consumer Finance” industry, but how does it contrast to its peers? We will compare Jernigan Capital to similar companies based on the strength of its valuation, earnings, analyst recommendations, institutional ownership, profitability, dividends and risk.

Institutional and Insider Ownership

45.7% of shares of all “Consumer Finance” companies are held by institutional investors. 8.3% of Jernigan Capital shares are held by insiders. Comparatively, 22.0% of shares of all “Consumer Finance” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Jernigan Capital	23.50%	35.87%	8.16%
Jernigan Capital Competitors	10.33%	-15.81%	1.99%

Dividends

Jernigan Capital pays an annual dividend of $0.96 per share and has a dividend yield of 4.9%. Jernigan Capital pays out 39.2% of its earnings in the form of a dividend. As a group, “Consumer Finance” companies pay a dividend yield of 6.2% and pay out 34.4% of their earnings in the form of a dividend. Jernigan Capital lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Analyst Ratings

This is a summary of current ratings and recommmendations for Jernigan Capital and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Jernigan Capital	0	2	4	1	2.86
Jernigan Capital Competitors	893	3359	5295	275	2.50

Jernigan Capital presently has a consensus target price of $27.50, indicating a potential upside of 39.88%. As a group, “Consumer Finance” companies have a potential upside of 20.83%. Given Jernigan Capital’s stronger consensus rating and higher probable upside, equities analysts plainly believe Jernigan Capital is more favorable than its peers.

Risk and Volatility

Jernigan Capital has a beta of -0.05, meaning that its stock price is 105% less volatile than the S&P 500. Comparatively, Jernigan Capital’s peers have a beta of 1.26, meaning that their average stock price is 26% more volatile than the S&P 500.

Earnings and Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Jernigan Capital	$613.29 million	$187.96 million	8.02
Jernigan Capital Competitors	$3.64 billion	$385.17 million	6.17

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

Summary

Jernigan Capital beats its peers on 8 of the 15 factors compared.

About Jernigan Capital

Jernigan Capital, Inc. was a real estate investment trust focused on the U.S. self-storage industry. The company provided financing and investment capital for the development of self-storage properties, partnering with developers and operators on projects across the country. Founded by self-storage industry executive Dean Jernigan, the company made debt and equity investments in development-stage facilities and, in some cases, retained ownership interests as projects were completed. Jernigan served as the company’s chairman and chief executive officer.