Great Elm Capital Group (GECC) versus Its Rivals Head-To-Head Survey

Great Elm Capital Group (NASDAQ:GECC) is one of 1,746 public companies in the “Capital Markets” industry, but how does it contrast to its peers? We will compare Great Elm Capital Group to related companies based on the strength of its analyst recommendations, earnings, profitability, dividends, valuation, risk and institutional ownership.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Great Elm Capital Group	-49.20%	15.01%	5.61%
Great Elm Capital Group Competitors	314.79%	9.90%	3.46%

Volatility and Risk

Great Elm Capital Group has a beta of 0.85, indicating that its stock price is 15% less volatile than the S&P 500. Comparatively, Great Elm Capital Group’s peers have a beta of 0.79, indicating that their average stock price is 21% less volatile than the S&P 500.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Great Elm Capital Group	2	1	0	0	1.33
Great Elm Capital Group Competitors	5605	20212	22565	650	2.37

As a group, “Capital Markets” companies have a potential upside of 23.16%. Given Great Elm Capital Group’s peers stronger consensus rating and higher probable upside, analysts plainly believe Great Elm Capital Group has less favorable growth aspects than its peers.

Dividends

Great Elm Capital Group pays an annual dividend of $1.00 per share and has a dividend yield of 20.3%. Great Elm Capital Group pays out -68.5% of its earnings in the form of a dividend. As a group, “Capital Markets” companies pay a dividend yield of 3.2% and pay out 29.2% of their earnings in the form of a dividend. Great Elm Capital Group has increased its dividend for 2 consecutive years. Great Elm Capital Group is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Insider & Institutional Ownership

38.8% of Great Elm Capital Group shares are held by institutional investors. Comparatively, 30.6% of shares of all “Capital Markets” companies are held by institutional investors. 3.9% of Great Elm Capital Group shares are held by insiders. Comparatively, 13.1% of shares of all “Capital Markets” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Earnings & Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Great Elm Capital Group	$49.99 million	-$31.79 million	-3.37
Great Elm Capital Group Competitors	$3.12 billion	$397.40 million	15.75

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

Summary

Great Elm Capital Group peers beat Great Elm Capital Group on 9 of the 15 factors compared.

Great Elm Capital Group Company Profile

Great Elm Capital Corp. (NASDAQ: GECC) is a closed-end, externally managed business development company that provides financing to middle-market companies. The company seeks to generate income and capital appreciation by investing primarily in privately negotiated debt securities, including senior secured loans, subordinated debt and other credit instruments. In addition to debt investments, Great Elm Capital may invest in equity securities and other interests when appropriate. Its portfolio companies generally operate in a range of industries, and the company focuses primarily on businesses in the United States.