Critical Analysis: Equus Total Return (EQS) versus Its Competitors

Equus Total Return (NYSE:EQSGet Rating) is one of 198 public companies in the “Investment offices, not elsewhere classified” industry, but how does it compare to its competitors? We will compare Equus Total Return to similar businesses based on the strength of its institutional ownership, risk, earnings, profitability, analyst recommendations, dividends and valuation.

Institutional and Insider Ownership

0.6% of Equus Total Return shares are held by institutional investors. Comparatively, 25.4% of shares of all “Investment offices, not elsewhere classified” companies are held by institutional investors. 30.7% of Equus Total Return shares are held by company insiders. Comparatively, 6.5% of shares of all “Investment offices, not elsewhere classified” companies are held 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.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Equus Total Return and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Equus Total Return 0 0 0 0 N/A
Equus Total Return Competitors 106 522 630 4 2.42

As a group, “Investment offices, not elsewhere classified” companies have a potential upside of 11.54%. Given Equus Total Return’s competitors higher possible upside, analysts plainly believe Equus Total Return has less favorable growth aspects than its competitors.

Risk and Volatility

Equus Total Return has a beta of 0.77, indicating that its share price is 23% less volatile than the S&P 500. Comparatively, Equus Total Return’s competitors have a beta of 0.66, indicating that their average share price is 34% less volatile than the S&P 500.

Valuation and Earnings

This table compares Equus Total Return and its competitors revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Equus Total Return $320,000.00 $2.59 million 11.02
Equus Total Return Competitors $90.68 million $63.59 million 18.16

Equus Total Return’s competitors have higher revenue and earnings than Equus Total Return. Equus Total Return 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.

Profitability

This table compares Equus Total Return and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Equus Total Return N/A -3.81% -3.60%
Equus Total Return Competitors 347.42% 7.05% 3.24%

Summary

Equus Total Return competitors beat Equus Total Return on 8 of the 10 factors compared.

About Equus Total Return

(Get Rating)

Equus Total Return, Inc. is a business development company (BDC) specializing in leveraged buyouts, management buyouts, corporate partnerships/joint ventures, growth and expansion capital, acquisition financing, roll-up acquisition strategies, operational turnarounds, recapitalizations of existing businesses, special situations, equity and equity-oriented securities issued by privately owned companies, debt securities including subordinate debt, debt convertible into common or preferred stock, or debt combined with warrants and common and preferred stock, and preferred equity financing. It invests in small to mid-sized companies and acts as a lead investor. It invests in technology, telecommunication, financial services, natural resource and industrial manufacturing and services. It invests in companies engaged in the alternative energy, real estate, healthcare, education, e-learning, leisure and entertainment, and foreign investment sector in the United States, China, India, and Europe. It investments include common and preferred stock, debt convertible into common or preferred stock, debt combined with warrants and options, and other rights to acquire common or preferred stock. It seeks to invest in companies between $1 million to $25 million with revenues between $5 million and $150 million with EBITDA between $2 million to $50 million. It seeks to take control and non-control equity positions. Equus Total Return, Inc. was founded in 1991 and is based in Houston, Texas with additional office in Vancouver, Canada.

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