Financial Comparison: Fidus Investment Corporation (FDUS) & Its Peers

Fidus Investment Corporation (NASDAQ: FDUS) is one of 543 public companies in the “Closed End Funds” industry, but how does it contrast to its peers? We will compare Fidus Investment Corporation to related companies based on the strength of its valuation, profitability, analyst recommendations, dividends, risk, institutional ownership and earnings.

Risk and Volatility

Fidus Investment Corporation has a beta of 1.14, suggesting that its share price is 14% more volatile than the S&P 500. Comparatively, Fidus Investment Corporation’s peers have a beta of 0.55, suggesting that their average share price is 45% less volatile than the S&P 500.

Dividends

Fidus Investment Corporation pays an annual dividend of $1.56 per share and has a dividend yield of 9.7%. Fidus Investment Corporation pays out 78.8% 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 7.5% and pay out 116.1% of their earnings in the form of a dividend. Fidus Investment Corporation is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Analyst Ratings

This is a summary of current ratings and target prices for Fidus Investment Corporation and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Fidus Investment Corporation 0 2 0 0 2.00
Fidus Investment Corporation Competitors 232 1566 1917 31 2.47

Fidus Investment Corporation currently has a consensus price target of $17.50, indicating a potential upside of 9.31%. As a group, “Closed End Funds” companies have a potential upside of 50.65%. Given Fidus Investment Corporation’s peers stronger consensus rating and higher possible upside, analysts clearly believe Fidus Investment Corporation has less favorable growth aspects than its peers.

Profitability

This table compares Fidus Investment Corporation and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Fidus Investment Corporation 64.21% 9.18% 5.75%
Fidus Investment Corporation Competitors -5.17% 7.34% 5.64%

Institutional and Insider Ownership

30.7% of Fidus Investment Corporation shares are held by institutional investors. Comparatively, 23.8% of shares of all “Closed End Funds” companies are held by institutional investors. 1.3% of Fidus Investment Corporation shares are held by company insiders. Comparatively, 4.1% of shares of all “Closed End Funds” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Fidus Investment Corporation and its peers revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Fidus Investment Corporation $60.23 million $41.57 million 8.09
Fidus Investment Corporation Competitors $238.79 million $43.51 million 287.54

Fidus Investment Corporation’s peers have higher revenue and earnings than Fidus Investment Corporation. Fidus Investment Corporation 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.

Summary

Fidus Investment Corporation peers beat Fidus Investment Corporation on 8 of the 15 factors compared.

Fidus Investment Corporation Company Profile

Fidus Investment Corporation is a closed-end, non-diversified investment company. The Company provides customized debt and equity financing solutions to lower middle-market companies. The Company’s investment objective is to provide attractive risk-adjusted returns by generating both current income from its debt investments and capital appreciation from its equity-related investments. The Company typically invests in mezzanine debt, which includes senior subordinated notes and junior secured loans. The Company structures some of its debt investments as senior secured or unitranche loans. The Company’s equity securities typically consist of either a direct minority equity investment in common or preferred stock or membership/partnership interests of a portfolio company, or it may receive warrants to buy a minority equity interest in a portfolio company in connection with a debt investment. Its investment activities are managed by Fidus Investment Advisors, LLC, its investment advisor.

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