Reviewing MVC Capital (MVC) & The Competition

MVC Capital (NYSE: MVC) is one of 133 public companies in the “Investment offices, not elsewhere classified” industry, but how does it compare to its competitors? We will compare MVC Capital to related businesses based on the strength of its valuation, dividends, institutional ownership, analyst recommendations, risk, profitability and earnings.

Profitability

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This table compares MVC Capital and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
MVC Capital 108.96% -1.84% -1.26%
MVC Capital Competitors -18.51% 6.56% 3.86%

Institutional and Insider Ownership

46.4% of MVC Capital shares are owned by institutional investors. Comparatively, 20.4% of shares of all “Investment offices, not elsewhere classified” companies are owned by institutional investors. 10.9% of MVC Capital shares are owned by insiders. Comparatively, 5.4% of shares of all “Investment offices, not elsewhere classified” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Risk & Volatility

MVC Capital has a beta of 0.67, suggesting that its share price is 33% less volatile than the S&P 500. Comparatively, MVC Capital’s competitors have a beta of 0.44, suggesting that their average share price is 56% less volatile than the S&P 500.

Dividends

MVC Capital pays an annual dividend of $0.60 per share and has a dividend yield of 6.0%. MVC Capital pays out -176.5% of its earnings in the form of a dividend. As a group, “Investment offices, not elsewhere classified” companies pay a dividend yield of 9.4% and pay out 110.5% of their earnings in the form of a dividend.

Earnings & Valuation

This table compares MVC Capital and its competitors top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
MVC Capital $20.10 million $27.32 million -29.38
MVC Capital Competitors $84.46 million $42.33 million 5.03

MVC Capital’s competitors have higher revenue and earnings than MVC Capital. MVC Capital is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a summary of recent ratings and price targets for MVC Capital and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MVC Capital 0 0 2 0 3.00
MVC Capital Competitors 93 420 468 4 2.39

MVC Capital currently has a consensus price target of $12.25, indicating a potential upside of 22.62%. As a group, “Investment offices, not elsewhere classified” companies have a potential upside of 0.03%. Given MVC Capital’s stronger consensus rating and higher possible upside, analysts plainly believe MVC Capital is more favorable than its competitors.

Summary

MVC Capital beats its competitors on 8 of the 15 factors compared.

About MVC Capital

MVC Capital, Inc. is a non-diversified closed-end management investment company. The Company’s investment objective is to seek to maximize total return from capital appreciation and/or income. The Company’s segments are its investing operations as a business development company, which includes MVC Cayman and MVC Turf, LLC and MVC Financial Services, Inc. (MVCFS). It seeks to achieve its investment objective by providing debt and equity financing to companies, including privately owned (portfolio companies), and by establishing a subsidiary or subsidiaries that would serve as general partner to a private equity or other investment fund(s). It has investments in various sectors, including energy, specialty chemicals, automotive dealerships, electrical engineering, medical devices, industrial manufacturing, financial services and information technology. The Tokarz Group Advisers LLC is the investment advisor of the Company.

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