Full Circle Capital Corp (NASDAQ: FULL) and FS Investment (NYSE:FSIC) are both closed end funds companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, earnings, dividends, profitability, risk and institutional ownership.
This table compares Full Circle Capital Corp and FS Investment’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Full Circle Capital Corp||-11.16%||-1.78%||-1.24%|
Valuation & Earnings
This table compares Full Circle Capital Corp and FS Investment’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Full Circle Capital Corp||N/A||N/A||N/A||($0.42)||-6.36|
|FS Investment||$422.81 million||4.79||$294.29 million||$0.89||9.27|
FS Investment has higher revenue and earnings than Full Circle Capital Corp. Full Circle Capital Corp is trading at a lower price-to-earnings ratio than FS Investment, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current ratings and recommmendations for Full Circle Capital Corp and FS Investment, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Full Circle Capital Corp||0||0||0||0||N/A|
FS Investment has a consensus target price of $9.67, suggesting a potential upside of 17.17%. Given FS Investment’s higher possible upside, analysts clearly believe FS Investment is more favorable than Full Circle Capital Corp.
Full Circle Capital Corp pays an annual dividend of $0.17 per share and has a dividend yield of 6.4%. FS Investment pays an annual dividend of $0.89 per share and has a dividend yield of 10.8%. Full Circle Capital Corp pays out -40.5% of its earnings in the form of a dividend. FS Investment pays out 100.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Institutional & Insider Ownership
32.6% of FS Investment shares are held by institutional investors. 1.0% of FS Investment shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
FS Investment beats Full Circle Capital Corp on 9 of the 10 factors compared between the two stocks.
Full Circle Capital Corp Company Profile
Full Circle Capital Corporation is a non-diversified closed-end management investment company. The Company’s investment objective is to generate both current income and capital appreciation through debt and equity investments. The Company invests primarily in senior secured loans and second lien loans, mezzanine loans and equity securities issued by lower middle-market and middle-market companies that operate in a range of industries. In its lending activities, the Company focuses primarily on portfolio companies with both tangible and intangible assets available as collateral and security against its loan to help mitigate its risk of loss, and cash flow to cover debt service. The Company focuses primarily on senior secured loans and stretch senior secured loans (unitranche loans), which combine characteristics of first-lien senior secured loans and second-lien or subordinated loans. The Company’s investment advisor is Full Circle Advisors, LLC (Full Circle Advisors).
FS Investment Company Profile
FS Investment Corporation is an externally managed, non-diversified, closed-end management investment company. The Company’s investment objectives are to generate current income and long-term capital appreciation. Its portfolio consists primarily of investments in senior secured loans and second lien secured loans of the private United States middle market companies and subordinated loans of the private United States companies. It may purchase interests in loans or make other debt investments, including investments in senior secured bonds, through secondary market transactions in the over-the-counter market or directly from target companies as primary market or directly originated investments. It invests in a range of industries, including capital goods; consumer services; consumer durables and apparel; materials; commercial and professional services, and diversified financials. Its investment advisor is FB Income Advisor, LLC.
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