Critical Comparison: Sound Point Meridian Capital (SPMC) versus Its Rivals

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

Profitability

This table compares Sound Point Meridian Capital and its competitors’ 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	23.47%	-11.46%	7.91%

Dividends

Sound Point Meridian Capital pays an annual dividend of $3.00 per share and has a dividend yield of 16.4%. 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 52.6% of their earnings in the form of a dividend.

Valuation & Earnings

This table compares Sound Point Meridian Capital and its competitors revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Sound Point Meridian Capital	$64.39 million	N/A	12.88
Sound Point Meridian Capital Competitors	$3.20 billion	$568.81 million	14.95

Sound Point Meridian Capital’s competitors 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 competitors, indicating that it is currently more affordable than other companies in its industry.

Risk and Volatility

Sound Point Meridian Capital has a beta of 0.26, suggesting that its stock price is 74% less volatile than the S&P 500. Comparatively, Sound Point Meridian Capital’s competitors have a beta of 1.20, suggesting that their average stock price is 20% more volatile than the S&P 500.

Institutional & Insider Ownership

53.9% of shares of all “FIN – INVEST MGMT” companies are held by institutional investors. 19.4% of shares of all “FIN – INVEST MGMT” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and recommmendations for Sound Point Meridian Capital and its competitors, 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	3193	3436	79	2.38

Sound Point Meridian Capital presently has a consensus price target of $21.25, suggesting a potential upside of 16.15%. As a group, “FIN – INVEST MGMT” companies have a potential upside of 7.52%. 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 competitors.

Summary

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

Sound Point Meridian Capital Company Profile

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.