Financial Analysis: Benev Capital (BEVFF) and Its Competitors

Benev Capital (OTCMKTS:BEVFF) is one of 52 public companies in the “DIVERSIFIED OPS” industry, but how does it compare to its peers? We will compare Benev Capital to similar businesses based on the strength of its profitability, risk, institutional ownership, dividends, earnings, analyst recommendations and valuation.

Insider and Institutional Ownership

44.2% of shares of all “DIVERSIFIED OPS” companies are held by institutional investors. 12.0% of Benev Capital shares are held by company insiders. Comparatively, 28.6% of shares of all “DIVERSIFIED OPS” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Dividends

Benev Capital pays an annual dividend of $0.18 per share and has a dividend yield of 7.8%. Benev Capital 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, “DIVERSIFIED OPS” companies pay a dividend yield of 1.7% and pay out 26.5% of their earnings in the form of a dividend.

Analyst Ratings

This is a summary of current recommendations and price targets for Benev Capital and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Benev Capital	0	1	0	0	2.00
Benev Capital Competitors	199	871	1635	64	2.56

As a group, “DIVERSIFIED OPS” companies have a potential downside of 1.78%. Given Benev Capital’s peers stronger consensus rating and higher probable upside, analysts plainly believe Benev Capital has less favorable growth aspects than its peers.

Volatility & Risk

Benev Capital has a beta of 0.85, indicating that its stock price is 15% less volatile than the S&P 500. Comparatively, Benev Capital’s peers have a beta of 0.80, indicating that their average stock price is 20% less volatile than the S&P 500.

Valuation & Earnings

This table compares Benev Capital and its peers revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Benev Capital	$47.44 million	$19.43 million	19.28
Benev Capital Competitors	$13.27 billion	$969.16 million	42.62

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Benev Capital	41.35%	11.41%	5.70%
Benev Capital Competitors	-24.47%	-40.66%	-9.10%

Summary

Benev Capital peers beat Benev Capital on 10 of the 15 factors compared.

About Benev Capital

Diversified Royalty Corp., a multi-royalty corporation, engages in the acquisition of royalties from multi-location businesses and franchisors in North America. It owns the Sutton, Mr. Lube + Tires, AIR MILES, Mr. Mikes, Nurse Next Door, Oxford Learning Centres, Stratus Building Solutions, and BarBurrito trademarks. The company was formerly known as BENEV Capital Inc. and changed its name to Diversified Royalty Corp. in September 2014. Diversified Royalty Corp. was founded in 1960 and is headquartered in Vancouver, Canada.