Comparing BlackRock Capital Investment Corporation (BKCC) & Eaton Vance Tax-Managed Buy-Write Opportunities Fund (NYSE:ETV)

Eaton Vance Tax-Managed Buy-Write Opportunities Fund (NYSE: ETV) and BlackRock Capital Investment Corporation (NASDAQ:BKCC) are both small-cap closed end funds companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, analyst recommendations, profitability, dividends and earnings.

Insider & Institutional Ownership

29.8% of BlackRock Capital Investment Corporation shares are held by institutional investors. 1.3% of BlackRock Capital Investment Corporation shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Eaton Vance Tax-Managed Buy-Write Opportunities Fund and BlackRock Capital Investment Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Eaton Vance Tax-Managed Buy-Write Opportunities Fund N/A N/A N/A
BlackRock Capital Investment Corporation 19.87% 9.67% 6.19%

Dividends

BlackRock Capital Investment Corporation pays an annual dividend of $0.72 per share and has a dividend yield of 10.8%. Eaton Vance Tax-Managed Buy-Write Opportunities Fund does not pay a dividend. BlackRock Capital Investment Corporation pays out 257.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Volatility and Risk

Eaton Vance Tax-Managed Buy-Write Opportunities Fund has a beta of 0.67, indicating that its stock price is 33% less volatile than the S&P 500. Comparatively, BlackRock Capital Investment Corporation has a beta of 0.88, indicating that its stock price is 12% less volatile than the S&P 500.

Valuation and Earnings

This table compares Eaton Vance Tax-Managed Buy-Write Opportunities Fund and BlackRock Capital Investment Corporation’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Eaton Vance Tax-Managed Buy-Write Opportunities Fund N/A N/A N/A N/A N/A
BlackRock Capital Investment Corporation $117.44 million 4.17 -$84.29 million $0.28 23.89

Eaton Vance Tax-Managed Buy-Write Opportunities Fund has higher revenue, but lower earnings than BlackRock Capital Investment Corporation.

Analyst Ratings

This is a summary of current recommendations and price targets for Eaton Vance Tax-Managed Buy-Write Opportunities Fund and BlackRock Capital Investment Corporation, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Eaton Vance Tax-Managed Buy-Write Opportunities Fund 0 0 0 0 N/A
BlackRock Capital Investment Corporation 0 2 0 0 2.00

BlackRock Capital Investment Corporation has a consensus target price of $7.25, suggesting a potential upside of 8.37%. Given BlackRock Capital Investment Corporation’s higher possible upside, analysts plainly believe BlackRock Capital Investment Corporation is more favorable than Eaton Vance Tax-Managed Buy-Write Opportunities Fund.

Summary

BlackRock Capital Investment Corporation beats Eaton Vance Tax-Managed Buy-Write Opportunities Fund on 9 of the 10 factors compared between the two stocks.

Eaton Vance Tax-Managed Buy-Write Opportunities Fund Company Profile

Eaton Vance Tax-Managed Buy-Write Opportunities Fund is a United States-based diversified, closed-end management investment company. The Fund’s investment objective is to provide income and gains, with a secondary objective of capital appreciation. It invests in a portfolio of common stocks and writes call options on one or more United States indices on a substantial portion of the value of its common stock portfolio to generate earnings from the option. It evaluates returns on an after tax basis and seeks to minimize and defer federal income taxes incurred by shareholders in connection with their investment in the Fund. Its portfolio of investments include hotels, restaurants and leisure; life sciences tools and services; software; technology hardware, storage and peripherals; technology hardware, storage and peripherals, and personal products, among others. Its investment advisor is Eaton Vance Management and its sub-advisor is Parametric Portfolio Associates LLC.

BlackRock Capital Investment Corporation Company Profile

BlackRock Capital Investment Corporation is an externally-managed, non-diversified, closed-end management investment company. The Company’s investment objective is to generate both current income and capital appreciation through its debt and equity investments. The Company provides middle-market companies with a range of financing solutions, including senior and junior secured, unsecured and subordinated debt securities and loans, and equity securities. Its targeted investment typically ranges between $10 million and $50 million. The Company generally seeks to invest in companies that operate in a range of industries. The Company’s investments are in senior and junior secured, unsecured and subordinated loans to the United States private and certain public middle-market companies. The Company’s investment advisor is BlackRock Advisors, LLC.

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