Reviewing Fidus Investment Corporation (FDUS)’s and Hamilton Lane Incorporated (NASDAQ:HLNE)’s results

Both Fidus Investment Corporation (NASDAQ:FDUS) and Hamilton Lane Incorporated (NASDAQ:HLNE) are each other’s competitor in the Asset Management industry. Thus the contrast of their institutional ownership, analyst recommendations, profitability, risk, dividends, earnings and valuation.

Earnings & Valuation

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Fidus Investment Corporation 76.42M 4.95 49.45M 2.04 7.68
Hamilton Lane Incorporated 262.80M 9.83 39.02M 1.73 27.11

Table 1 demonstrates Fidus Investment Corporation and Hamilton Lane Incorporated’s gross revenue, earnings per share (EPS) and valuation. Hamilton Lane Incorporated appears to has lower earnings, but higher revenue than Fidus Investment Corporation. The company with a lower P/E ratio is presently more affordable of the two stocks. Fidus Investment Corporation’s presently lower P/E ratio means it is more affordable than Hamilton Lane Incorporated.

Profitability

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

Net Margins Return on Equity Return on Assets
Fidus Investment Corporation 64.71% 0% 0%
Hamilton Lane Incorporated 14.85% 42.5% 11.8%

Dividends

Fidus Investment Corporation pays out an annual dividend of $1.56 per share while its dividend yield is 10.13%. Meanhile, Hamilton Lane Incorporated’s yearly dividend is $0.81 per share and 1.73% dividend yield.

Analyst Recommendations

Ratings and Recommendations for Fidus Investment Corporation and Hamilton Lane Incorporated can be find in next table.

Sell Ratings Hold Ratings Buy Ratings Rating Score
Fidus Investment Corporation 0 0 1 3.00
Hamilton Lane Incorporated 0 0 0 0.00

$18 is Fidus Investment Corporation’s consensus price target while its potential upside is 16.43%.

Institutional & Insider Ownership

Institutional investors held 29.33% of Fidus Investment Corporation shares and 88.3% of Hamilton Lane Incorporated shares. Insiders held roughly 1.27% of Fidus Investment Corporation’s shares. Competitively, 11.9% are Hamilton Lane Incorporated’s share held by insiders.

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 -0.19% 11.95% 11.7% 2.91% 22.33% 33.88%
Hamilton Lane Incorporated 3.85% 29.36% 23.47% -3.32% 34.67% 26.81%

For the past year Fidus Investment Corporation was more bullish than Hamilton Lane Incorporated.

Summary

Fidus Investment Corporation beats Hamilton Lane Incorporated on 9 of the 15 factors.

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.

Hamilton Lane Incorporated is an investment firm specializing in direct and fund of fund investments. It provides following services: separate accounts (customized to each individual client and structured as single client vehicles); specialized strategies (fund-of-funds, secondaries, co-investments, taft-hartley, distribution management); advisory relationships (including due diligence, strategic portfolio planning, monitoring and reporting services); and reporting and analytics solutions. For direct investments, the firm invests in mid and late venture, mature companies, growth equity, distressed debt, turnarounds, bridge financing, mezzanine financing, and buyouts in middle market companies. For fund of fund investments, it invests in mezzanine, venture capital, private equity, turnaround, secondary investments, and special situation funds. The firm invests in real estate investments. It invests in private equity markets in North America, Latin America, United States, Western Europe, Middle East, Africa, United Kingdom, Asia, Japan, and Australia. Hamilton Lane Incorporated was founded in 1991 and is based in Bala Cynwyd, Pennsylvania with additional thirteen offices across Europe, North America, and Asia.