Critical Analysis: Benev Capital (BEVFF) versus The Competition

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

Profitability

This table compares Benev Capital and its rivals’ 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	-21.64%	-39.26%	-6.96%

Dividends

Benev Capital pays an annual dividend of $0.18 per share and has a dividend yield of 7.4%. 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 1.6% and pay out 26.9% of their earnings in the form of a dividend.

Institutional and Insider Ownership

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

Risk & Volatility

Benev Capital has a beta of 0.86, meaning that its share price is 14% less volatile than the S&P 500. Comparatively, Benev Capital’s rivals have a beta of 0.79, meaning that their average share price is 21% less volatile than the S&P 500.

Valuation and Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Benev Capital	$47.44 million	$19.43 million	20.25
Benev Capital Competitors	$13.57 billion	$994.46 million	43.10

Benev Capital’s rivals have higher revenue and earnings than Benev Capital. Benev 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.

Analyst Ratings

This is a summary of recent ratings and target prices for Benev Capital and its rivals, 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	202	873	1641	64	2.56

As a group, “DIVERSIFIED OPS” companies have a potential downside of 5.40%. Given Benev Capital’s rivals stronger consensus rating and higher probable upside, analysts plainly believe Benev Capital has less favorable growth aspects than its rivals.

Summary

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

Benev Capital Company Profile

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.