Head-To-Head Contrast: General Finance (GFN) and The Competition

General Finance (NASDAQ: GFN) is one of 97 public companies in the “Business Support Services” industry, but how does it weigh in compared to its rivals? We will compare General Finance to similar businesses based on the strength of its earnings, institutional ownership, analyst recommendations, profitability, valuation, dividends and risk.

Profitability

This table compares General Finance and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
General Finance -0.73% -1.29% -0.31%
General Finance Competitors -18.70% -180.36% 2.03%

Volatility & Risk

General Finance has a beta of 1.31, meaning that its share price is 31% more volatile than the S&P 500. Comparatively, General Finance’s rivals have a beta of 1.13, meaning that their average share price is 13% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings for General Finance and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
General Finance 0 1 1 0 2.50
General Finance Competitors 640 1892 2620 64 2.40

General Finance presently has a consensus price target of $9.20, indicating a potential upside of 46.03%. As a group, “Business Support Services” companies have a potential upside of 0.25%. Given General Finance’s stronger consensus rating and higher possible upside, equities research analysts clearly believe General Finance is more favorable than its rivals.

Insider & Institutional Ownership

27.6% of General Finance shares are held by institutional investors. Comparatively, 62.9% of shares of all “Business Support Services” companies are held by institutional investors. 25.9% of General Finance shares are held by company insiders. Comparatively, 12.7% of shares of all “Business Support Services” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Earnings & Valuation

This table compares General Finance and its rivals top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
General Finance $276.93 million -$2.96 million -30.00
General Finance Competitors $1.24 billion $76.68 million 1,471.62

General Finance’s rivals have higher revenue and earnings than General Finance. General Finance 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.

About General Finance

General Finance Corporation is a specialty rental services company. The Company offers a range of portable storage units, including its core 20-feet and 40-feet steel containers, office container, mobile office and modular space products and steel tanks. It has two geographic areas that include its four operating segments: the Asia-Pacific area, consisting of the leasing operations of Royal Wolf Holdings Limited and its Australian and New Zealand subsidiaries (Royal Wolf), and North America, consisting of the combined leasing operations of Pac-Van, Inc. and its Canadian subsidiary, PV Acquisition Corp. (Pac-Van) and Lone Star Tank Rental Inc. (Lone Star), and the manufacturing operations of GFN Manufacturing Corporation and its subsidiary, Southern Frac, LLC (Southern Frac). As of June 30, 2016, the Company provided its storage solutions to over 41,000 customers across a range of industries, including commercial, construction, retail, transportation, education and others.

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