Solar Senior Capital (NASDAQ: SUNS) and Liberty All-Star Equity Fund (NYSE:USA) are both small-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, dividends, profitability, risk, earnings, analyst recommendations and institutional ownership.
Valuation & Earnings
This table compares Solar Senior Capital and Liberty All-Star Equity Fund’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Solar Senior Capital||$32.17 million||8.41||$23.38 million||$1.41||11.96|
|Liberty All-Star Equity Fund||N/A||N/A||N/A||N/A||N/A|
This table compares Solar Senior Capital and Liberty All-Star Equity Fund’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Solar Senior Capital||67.60%||8.38%||4.42%|
|Liberty All-Star Equity Fund||N/A||N/A||N/A|
This is a breakdown of current recommendations and price targets for Solar Senior Capital and Liberty All-Star Equity Fund, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Solar Senior Capital||0||0||0||0||N/A|
|Liberty All-Star Equity Fund||0||0||0||0||N/A|
Insider & Institutional Ownership
25.7% of Solar Senior Capital shares are owned by institutional investors. Comparatively, 21.0% of Liberty All-Star Equity Fund shares are owned by institutional investors. 5.6% of Solar Senior Capital shares are owned by insiders. Comparatively, 0.1% of Liberty All-Star Equity Fund shares are owned by 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.
Risk & Volatility
Solar Senior Capital has a beta of 0.59, suggesting that its stock price is 41% less volatile than the S&P 500. Comparatively, Liberty All-Star Equity Fund has a beta of 1.12, suggesting that its stock price is 12% more volatile than the S&P 500.
Solar Senior Capital pays an annual dividend of $1.41 per share and has a dividend yield of 8.4%. Liberty All-Star Equity Fund pays an annual dividend of $0.17 per share and has a dividend yield of 2.7%. Solar Senior Capital 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.
Solar Senior Capital beats Liberty All-Star Equity Fund on 7 of the 9 factors compared between the two stocks.
Solar Senior Capital Company Profile
Solar Senior Capital Ltd. is a closed-end, externally managed, non-diversified management investment company. The Company’s investment objective is to seek to maximize current income consistent with the preservation of capital. The Company seeks to achieve its investment objective by directly and indirectly investing in senior loans, including first lien, unitranche, and second lien debt instruments, made to private middle-market companies whose debt is rated below investment grade, which it refers to collectively as senior loans. It may also invest in debt of public companies that are thinly traded or in equity securities. Under normal market conditions, at least 80% of the value of its net assets (including the amount of any borrowings for investment purposes) will be invested in senior loans. It invests in privately held the United States middle-market companies. Its investment activities are managed by Solar Capital Partners, LLC (Solar Capital Partners or the Investment Advisor).
Liberty All-Star Equity Fund Company Profile
There is no company description available for Liberty All-Star Equity.
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