Analyzing Harvest Capital Credit Corporation (HCAP) and Its Competitors

Harvest Capital Credit Corporation (NASDAQ: HCAP) is one of 556 public companies in the “Closed End Funds” industry, but how does it contrast to its peers? We will compare Harvest Capital Credit Corporation to similar companies based on the strength of its valuation, earnings, risk, dividends, institutional ownership, analyst recommendations and profitability.

Institutional & Insider Ownership

5.8% of Harvest Capital Credit Corporation shares are held by institutional investors. Comparatively, 23.2% of shares of all “Closed End Funds” companies are held by institutional investors. 9.5% of Harvest Capital Credit Corporation shares are held by insiders. Comparatively, 3.3% of shares of all “Closed End Funds” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Volatility & Risk

Harvest Capital Credit Corporation has a beta of 0.76, indicating that its share price is 24% less volatile than the S&P 500. Comparatively, Harvest Capital Credit Corporation’s peers have a beta of 0.56, indicating that their average share price is 44% less volatile than the S&P 500.

Earnings & Valuation

This table compares Harvest Capital Credit Corporation and its peers gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Harvest Capital Credit Corporation N/A N/A 15.18
Harvest Capital Credit Corporation Competitors $57.20 million $39.05 million -0.23

Harvest Capital Credit Corporation’s peers have higher revenue and earnings than Harvest Capital Credit Corporation. Harvest Capital Credit Corporation is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Harvest Capital Credit Corporation and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Harvest Capital Credit Corporation 27.50% 11.71% 6.97%
Harvest Capital Credit Corporation Competitors 518.10% 7.79% 6.00%

Analyst Ratings

This is a breakdown of current recommendations and price targets for Harvest Capital Credit Corporation and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Harvest Capital Credit Corporation 0 1 0 0 2.00
Harvest Capital Credit Corporation Competitors 341 1474 1499 26 2.36

Harvest Capital Credit Corporation currently has a consensus price target of $13.50, indicating a potential downside of 1.17%. As a group, “Closed End Funds” companies have a potential upside of 41.42%. Given Harvest Capital Credit Corporation’s peers stronger consensus rating and higher probable upside, analysts plainly believe Harvest Capital Credit Corporation has less favorable growth aspects than its peers.

Dividends

Harvest Capital Credit Corporation pays an annual dividend of $1.35 per share and has a dividend yield of 9.9%. Harvest Capital Credit Corporation pays out 150.0% 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, “Closed End Funds” companies pay a dividend yield of 9.0% and pay out 87.5% of their earnings in the form of a dividend.

Summary

Harvest Capital Credit Corporation peers beat Harvest Capital Credit Corporation on 8 of the 14 factors compared.

About Harvest Capital Credit Corporation

Harvest Capital Credit Corporation is an externally managed, closed-end, non-diversified management investment company. The Company operates as a business development company and provides customized financing solutions for small to mid-sized companies. Its investment objective is to generate both current income and capital appreciation by making direct investments in the form of subordinated debt, senior debt, and to a lesser extent, minority equity investments in privately-held the United States small to mid-sized companies. Its investment portfolio includes over 56.8% of senior secured term loans, 40.8% of junior secured term loans, 1.3% of equity investments and 1.1% of collateralized loan obligation (CLO) equity at fair value. It may also invest in other investments, such as loans to larger, publicly-traded companies, high-yield bonds and distressed debt securities. It may also invest in debt and equity securities issued by CLO funds. HCAP Advisors LLC is its investment adviser.

Receive News & Ratings for Harvest Capital Credit Corporation Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Harvest Capital Credit Corporation and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply