Contrasting of Fidus Investment Corporation (FDUS) and Aberdeen Australia Equity Fund Inc. (NYSEAMERICAN:IAF)

Fidus Investment Corporation (NASDAQ:FDUS) and Aberdeen Australia Equity Fund Inc. (NYSEAMERICAN:IAF) compete with each other in the Asset Management sector. We will analyze and contrast their dividends, institutional ownership, analyst recommendations, profitability, risk, earnings and valuation.

Valuation & Earnings

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Fidus Investment Corporation 71.28M 4.90 49.88M 1.92 7.17
Aberdeen Australia Equity Fund Inc. 5.64M 21.30 5.49M 0.94 5.26

Table 1 showcases the top-line revenue, earnings per share and valuation of Fidus Investment Corporation and Aberdeen Australia Equity Fund Inc. Aberdeen Australia Equity Fund Inc. seems to has lower revenue and earnings compared to Fidus Investment Corporation. The company that is currently more expensive of the two stocks is the one that has a higher price-to-earnings ratio. Fidus Investment Corporation is currently more expensive than Aberdeen Australia Equity Fund Inc., because it’s trading at a higher price-to-earnings ratio.

Profitability

Table 2 hightlights the net margins, return on assets and return on equity of the two companies.

Net Margins Return on Equity Return on Assets
Fidus Investment Corporation 69.98% 0% 0%
Aberdeen Australia Equity Fund Inc. -97.34% 0% 0%

Dividends

Fidus Investment Corporation dividend pay is $1.56 per share with 10.92% dividend yield annually. On the other side Aberdeen Australia Equity Fund Inc. pays an annual dividend of $0.64 per share. It’s dividend yield is 12.21%.

Insider and Institutional Ownership

Roughly 29.5% of Fidus Investment Corporation shares are held by institutional investors while 24.2% of Aberdeen Australia Equity Fund Inc. are owned by institutional investors. Fidus Investment Corporation’s share held by insiders are 1.26%.

Performance

Here are the Weekly, Monthly, Quarterly, Half Yearly, Yearly and YTD Performance of both pretenders.

Performance (W) Performance (M) Performance (Q) Performance (HY) Performance (Y) Performance (YTD)
Fidus Investment Corporation -1.85% -2.34% -6.24% -3.63% -12.31% -8.9%
Aberdeen Australia Equity Fund Inc. -4.99% -7.82% -13.76% -20.67% -21.43% -22.29%

For the past year Fidus Investment Corporation was less bearish than Aberdeen Australia Equity Fund Inc.

Summary

On 12 of the 12 factors Fidus Investment Corporation beats Aberdeen Australia Equity Fund Inc.

Fidus Investment Corporation is a business development company specializing in leveraged buyouts, refinancings, change of ownership transactions, recapitalizations, strategic acquisitions, mezzanine, growth capital, business expansion, lower middle market investments, debt investments, subordinated and second lien loans, senior secured and unitranche debt, preferred equity, warrants, subordinated debt, senior subordinated notes, junior secured loans, and unitranche loans. It does not invest in turnarounds or distressed situations. The fund prefers to invest in aerospace and defense, business services, consumer products and services including retail, food, and beverage, healthcare products and services, industrial products and services, information technology services, niche manufacturing, transportation and logistics, and value-added distribution sectors. It seeks to invest in companies based in United States. The fund typically invests between $5 million and $15 million per transaction in companies with annual revenues between $10 million and $150 million and an annual EBITDA between $3 million and $20 million, but it can occasionally invest in larger or smaller companies. It seeks to acquire minority equity stakes and board observation rights in conjunction with its investments.