Analyzing PennantPark Floating Rate Capital (PFLT) and The Competition

PennantPark Floating Rate Capital (NASDAQ: PFLT) is one of 547 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 analyst recommendations, risk, earnings, profitability, institutional ownership, valuation and dividends.

Earnings & Valuation

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

Gross Revenue Net Income Price/Earnings Ratio
PennantPark Floating Rate Capital $59.50 million $36.32 million 11.63
PennantPark Floating Rate Capital Competitors $238.76 million $44.95 million 298.07

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 95.0% 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 7.9% and pay out 93.8% of their earnings in the form of a dividend.

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 61.05% 7.66% 4.46%
PennantPark Floating Rate Capital Competitors -16.40% 7.69% 5.90%

Institutional & Insider Ownership

30.7% of PennantPark Floating Rate Capital shares are owned by institutional investors. Comparatively, 23.5% of shares of all “Closed End Funds” companies are owned by institutional investors. 1.2% of PennantPark Floating Rate Capital shares are owned by insiders. Comparatively, 4.2% of shares of all “Closed End Funds” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Volatility & Risk

PennantPark Floating Rate Capital has a beta of 0.59, suggesting that its share price is 41% less volatile than the S&P 500. Comparatively, PennantPark Floating Rate Capital’s rivals have a beta of 0.55, suggesting that their average share price is 45% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for PennantPark Floating Rate Capital and its rivals, as reported by MarketBeat.com.

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 237 1577 1941 33 2.47

PennantPark Floating Rate Capital presently has a consensus target price of $14.90, indicating a potential upside of 6.81%. As a group, “Closed End Funds” companies have a potential upside of 48.09%. 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.

Summary

PennantPark Floating Rate Capital rivals beat PennantPark Floating Rate Capital on 9 of the 15 factors compared.

PennantPark Floating Rate Capital Company Profile

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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