Reviewing Great Elm Capital (NASDAQ:GECC) & Its Peers

Great Elm Capital (NASDAQ: GECC) is one of 52 publicly-traded companies in the “Investment advice” industry, but how does it compare to its rivals? We will compare Great Elm Capital to related businesses based on the strength of its profitability, valuation, analyst recommendations, dividends, earnings, risk and institutional ownership.

Dividends

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Great Elm Capital pays an annual dividend of $1.00 per share and has a dividend yield of 10.8%. Great Elm Capital pays out 65.8% of its earnings in the form of a dividend. As a group, “Investment advice” companies pay a dividend yield of 3.6% and pay out 47.5% of their earnings in the form of a dividend.

Volatility and Risk

Great Elm Capital has a beta of 0.51, indicating that its share price is 49% less volatile than the S&P 500. Comparatively, Great Elm Capital’s rivals have a beta of 1.22, indicating that their average share price is 22% more volatile than the S&P 500.

Profitability

This table compares Great Elm Capital and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Great Elm Capital -9.26% 11.93% 7.83%
Great Elm Capital Competitors 12.38% 28.06% 10.28%

Analyst Recommendations

This is a summary of recent recommendations and price targets for Great Elm Capital and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Great Elm Capital 0 2 2 0 2.50
Great Elm Capital Competitors 324 1718 2139 113 2.48

Great Elm Capital currently has a consensus price target of $13.33, suggesting a potential upside of 44.61%. As a group, “Investment advice” companies have a potential upside of 13.84%. Given Great Elm Capital’s stronger consensus rating and higher possible upside, analysts plainly believe Great Elm Capital is more favorable than its rivals.

Valuation & Earnings

This table compares Great Elm Capital and its rivals revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Great Elm Capital $29.73 million -$2.75 million 6.07
Great Elm Capital Competitors $2.42 billion $277.86 million 14.50

Great Elm Capital’s rivals have higher revenue and earnings than Great Elm Capital. Great Elm 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.

Insider & Institutional Ownership

8.1% of Great Elm Capital shares are owned by institutional investors. Comparatively, 48.2% of shares of all “Investment advice” companies are owned by institutional investors. 21.0% of shares of all “Investment advice” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Great Elm Capital rivals beat Great Elm Capital on 11 of the 15 factors compared.

Great Elm Capital Company Profile

Great Elm Capital Corp. is a closed-end, non-diversified management investment company. The Company is focused on generating interest and capital appreciation by investing in the capital structures of middle-market companies that operate in a range of industries. The Company also focuses on making multi-year investments, primarily in secured and senior unsecured debt instruments that it purchases in the secondary markets, though it may also originate investments or acquire them directly from issuers. The Company’s investment advisor is Great Elm Capital Management, Inc. (GECM). Great Elm Capital Group is the parent company of GECM.

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