THL Credit (NASDAQ: TCRD) is one of 556 publicly-traded companies in the “Closed End Funds” industry, but how does it contrast to its rivals? We will compare THL Credit to similar businesses based on the strength of its earnings, risk, institutional ownership, profitability, dividends, analyst recommendations and valuation.
Earnings and Valuation
This table compares THL Credit and its rivals gross revenue, earnings per share and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|THL Credit Competitors||$57.20 million||$39.05 million||-0.21|
THL Credit’s rivals have higher revenue and earnings than THL Credit. THL Credit is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.
Volatility & Risk
THL Credit has a beta of 1.07, meaning that its share price is 7% more volatile than the S&P 500. Comparatively, THL Credit’s rivals have a beta of 0.56, meaning that their average share price is 44% less volatile than the S&P 500.
This table compares THL Credit and its rivals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|THL Credit Competitors||518.57%||7.92%||6.15%|
THL Credit pays an annual dividend of $1.08 per share and has a dividend yield of 11.8%. THL Credit pays out 145.9% 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 9.0% and pay out 87.2% of their earnings in the form of a dividend.
Insider and Institutional Ownership
45.6% of THL Credit shares are owned by institutional investors. Comparatively, 23.2% of shares of all “Closed End Funds” companies are owned by institutional investors. 0.8% of THL Credit shares are owned by insiders. Comparatively, 3.3% of shares of all “Closed End Funds” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
This is a breakdown of recent ratings for THL Credit and its rivals, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|THL Credit Competitors||341||1473||1498||26||2.36|
THL Credit currently has a consensus price target of $11.00, suggesting a potential upside of 20.22%. As a group, “Closed End Funds” companies have a potential upside of 43.59%. Given THL Credit’s rivals stronger consensus rating and higher probable upside, analysts plainly believe THL Credit has less favorable growth aspects than its rivals.
THL Credit rivals beat THL Credit on 9 of the 14 factors compared.
THL Credit Company Profile
THL Credit, Inc. is an externally managed, non-diversified closed-end management investment company. The Company’s investment objective is to generate both current income and capital appreciation, primarily through investments in privately negotiated debt and equity securities of lower middle market companies. The Company is a direct lender to lower middle-market companies and invests primarily in directly originated first lien senior secured loans, including unitranche investments. In certain instances, it also makes second lien secured loans and subordinated, or mezzanine, debt investments, which may include an associated equity component, such as warrants, preferred stock or similar securities, and direct equity investments. Its first lien senior secured loans may be structured as traditional first lien senior secured loans or as unitranche loans. The Company’s investment activities are managed by THL Credit Advisors LLC.
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