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Ares Capital's Dividend, NAV, And Valuation Vs. 14 BDC Peers - Part 2 (Indications Of An Undervalued Stock)

Published Mon, 11 Mar 2019 06:51:01 -0400 on Seeking Alpha

Author’s Note: PART 1 of this article analyzed Ares Capital Corp.’s (ARCC) recent quarterly results and compared several of the company’s metrics to ten other business development company (“BDC”) peers. PART 1 helps lead to a better understanding of the topics and analysis that will be discussed in PART 2. The link to PART 1’s analysis is provided below:
Ares Capital's Dividend, NAV, And Valuation Versus 10 BDC Peers - Part 1 (Indications Of An Undervalued Stock)
This two-part article is a very detailed analysis comparing ARCC to some of the company’s BDC peers (currently all sector peers I cover). I am writing this two-part article due to the continued requests that such an analysis be specifically performed on ARCC and some of the company’s BDC peers at periodic intervals. For readers who just want the summarized conclusions/results, I would suggest to scroll down to the “Conclusions Drawn” section at the bottom of each part of the article.
Focus of Article:
The focus of PART 2 of this article is to compare ARCC’s recent dividend per share rates, yield percentages, and several other dividend sustainability metrics to fourteen other BDC peers. This analysis will show recent past data with supporting documentation within Table 3 below. This article will also project each company’s near-term dividend sustainability which is partially based on the metrics shown in Table 3 and several additional metrics shown in Table 4 below.
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Stock name Last trade   P/E Earnings/Share Dividend/Share Dividend yield
MEDLEY MANAGEMENT 3.37   0.0 -0.54 0.80 22.22
APOLLO INVESTMENT 15.72   18.5 0.85 1.80 11.52
PROSPECT CAPITAL 6.57   13.1 0.50 0.72 10.86
OAKTREE SPECIALTY LENDING 4.90   0.0 -1.39 0.50 10.02
TCP CAPITAL 14.26   18.5 0.77 1.44 10.02
NEWTEK BUSINESS SERVICES 20.28   0.0 0.00 1.60 9.77
SOLAR CAPITAL 21.75   13.8 1.58 1.64 7.63
OAKTREE STRATEGIC INCOME 8.24   45.8 0.18 0.62 7.46
GOLUB CAPITAL BDC 17.90   13.6 1.32 1.28 7.11
GLADSTONE INVESTMENT 11.84   3.8 3.09 0.82 6.96
MEDLEY CAPITAL 3.20   0.0 -1.63 0.20 6.21
MAIN STREET CAPITAL 38.44   13.7 2.81 2.40 6.17
PENNANTPARK FLOATING RATE CAPITAL 12.98   13.8 0.94 0.76 5.90
ALTRIA GROUP 56.75   15.4 3.68 3.20 5.70
BLACKROCK 433.55   16.3 26.62 13.20 3.06