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
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 US Bancorp Wells Fargo |
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!
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