Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, business-development company American Capital (Nasdaq: ACAS ) has earned a respected four-star ranking.
With that in mind, let's take a closer look at American Capital's business and see what CAPS investors are saying about the stock right now.
American Capital facts
| |
|
| Headquarters (Founded) |
Bethesda, Md. (1986) |
| Market Cap |
$3.3 billion |
| Industry |
Asset management |
| Trailing-12-Month Revenue |
$600 million |
| Management |
Chairman/CEO Malon Wilkus
CFO John Erickson |
| Return on Equity (Average, Past 3 Years) |
(21.6%) |
| Competitors |
Goldman Sachs (NYSE: GS )
US Bancorp (NYSE: USB )
Wells Fargo (NYSE: WFC ) |
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 95% of the 2,074 members who have rated American Capital believe the stock will outperform the S&P 500 going forward. These bulls include BuffettJunior1 and Ki11tank.
Earlier this month , BuffettJunior1 tapped American Capital as a timely bargain opportunity: "Very good value at this price. Fundamentals are solid, this pick will soar!"
In fact, American Capital currently trades at a cheapish price-to-book ratio of 0.9. That represents a discount to listed gorilla rivals such as Goldman Sachs (1.2), US Bancorp (1.9), and Wells Fargo (1.4).
CAPS member Ki11tank expands on the outperform argument:
At this stage of the game this pick is fairly simple, I started accumulating this in the low $2's and have swung large positions since. With the steady NAV increases and other improvements on the balance sheet value should continue to increase as the price follows. IMO ACAS will perform quite well for the next couple years as fear subsides and fundamentals continue to lift off, a div is likely in that time frame as well!
What do you think about American Capital, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!
RSS Headlines
Fool UK