CM Finance (NASDAQ: CMFN) is one of 35 publicly-traded companies in the “Investors, not elsewhere classified” industry, but how does it contrast to its competitors? We will compare CM Finance to related companies based on the strength of its profitability, dividends, institutional ownership, earnings, analyst recommendations, risk and valuation.
This is a summary of current ratings and target prices for CM Finance and its competitors, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|CM Finance Competitors||110||529||528||20||2.39|
Insider and Institutional Ownership
45.8% of CM Finance shares are held by institutional investors. Comparatively, 33.0% of shares of all “Investors, not elsewhere classified” companies are held by institutional investors. 1.8% of CM Finance shares are held by company insiders. Comparatively, 6.6% of shares of all “Investors, not elsewhere classified” 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.
This table compares CM Finance and its competitors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|CM Finance Competitors||81.06%||6.23%||2.85%|
Valuation and Earnings
This table compares CM Finance and its competitors gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Net Income||Price/Earnings Ratio|
|CM Finance||$31.01 million||$23.57 million||7.13|
|CM Finance Competitors||$118.05 million||$49.12 million||10.98|
CM Finance’s competitors have higher revenue and earnings than CM Finance. CM Finance 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.
CM Finance pays an annual dividend of $1.00 per share and has a dividend yield of 12.2%. CM Finance pays out 87.0% 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, “Investors, not elsewhere classified” companies pay a dividend yield of 10.4% and pay out 106.8% of their earnings in the form of a dividend. CM Finance is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.
Risk and Volatility
CM Finance has a beta of 1.13, meaning that its share price is 13% more volatile than the S&P 500. Comparatively, CM Finance’s competitors have a beta of -1.15, meaning that their average share price is 215% less volatile than the S&P 500.
CM Finance competitors beat CM Finance on 9 of the 15 factors compared.
About CM Finance
CM Finance Inc is an externally managed, non-diversified closed-end management investment company. The Company is a specialty finance company that invests primarily in the debt of the United States middle-market companies. The Company’s primary investment objective is to maximize total return to stockholders in the form of current income and capital appreciation by investing in debt and related equity of privately held lower middle-market companies. As of June 30, 2016, the Company’s portfolio consisted of debt and equity investments in 22 portfolio companies. It invests in unitranche loans and standalone second and first lien loans, with an emphasis on floating rate debt. It also selectively invests in mezzanine loans/structured equity and in the equity of portfolio companies through warrants and other instruments.CM Investment Partners LLC is an external investment advisor of the Company.
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