Analyzing Sound Point Meridian Capital (SPMC) and The Competition

Sound Point Meridian Capital (NYSE:SPMC) is one of 64 public companies in the “FIN – INVEST MGMT” industry, but how does it compare to its rivals? We will compare Sound Point Meridian Capital to similar companies based on the strength of its dividends, analyst recommendations, risk, earnings, institutional ownership, valuation and profitability.

Institutional and Insider Ownership

53.9% of shares of all “FIN – INVEST MGMT” companies are owned by institutional investors. 20.2% of shares of all “FIN – INVEST MGMT” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Sound Point Meridian Capital and its rivals top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Sound Point Meridian Capital	N/A	N/A	12.57
Sound Point Meridian Capital Competitors	$358.46 billion	$568.81 million	14.71

Sound Point Meridian Capital’s rivals have higher revenue and earnings than Sound Point Meridian Capital. Sound Point Meridian 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.

Volatility and Risk

Sound Point Meridian Capital has a beta of 0.26, meaning that its share price is 74% less volatile than the S&P 500. Comparatively, Sound Point Meridian Capital’s rivals have a beta of 1.21, meaning that their average share price is 21% more volatile than the S&P 500.

Profitability

This table compares Sound Point Meridian Capital and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sound Point Meridian Capital	N/A	N/A	N/A
Sound Point Meridian Capital Competitors	23.61%	-11.43%	7.94%

Dividends

Sound Point Meridian Capital pays an annual dividend of $3.00 per share and has a dividend yield of 16.8%. Sound Point Meridian Capital pays out 211.3% 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, “FIN – INVEST MGMT” companies pay a dividend yield of 2.2% and pay out 52.5% of their earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of recent recommendations for Sound Point Meridian Capital and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sound Point Meridian Capital	0	1	1	1	3.00
Sound Point Meridian Capital Competitors	773	3189	3432	78	2.38

Sound Point Meridian Capital currently has a consensus price target of $21.25, suggesting a potential upside of 19.05%. As a group, “FIN – INVEST MGMT” companies have a potential upside of 8.36%. Given Sound Point Meridian Capital’s stronger consensus rating and higher probable upside, research analysts plainly believe Sound Point Meridian Capital is more favorable than its rivals.

Summary

Sound Point Meridian Capital rivals beat Sound Point Meridian Capital on 9 of the 14 factors compared.

About Sound Point Meridian Capital

Sound Point Meridian Capital Inc. is an externally managed, non-diversified closed-end management investment company. Its investment objective is to generate high current income, with a secondary objective to generate capital appreciation, by investing primarily in third-party collateralized loan obligation equity and mezzanine tranches. Sound Point Meridian Capital Inc. is based in NEW YORK.