Analyzing Apollo Investment (NASDAQ:AINV) & Blackrock Muniyld California Quty Fd (NASDAQ:MCA)

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Apollo Investment (NASDAQ:AINV) and Blackrock Muniyld California Quty Fd (NYSE:MCA) are both small-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, institutional ownership, valuation, dividends, earnings and profitability.

Dividends

Apollo Investment pays an annual dividend of $1.80 per share and has a dividend yield of 11.4%. Blackrock Muniyld California Quty Fd pays an annual dividend of $0.60 per share and has a dividend yield of 4.2%. Apollo Investment pays out 99.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Risk and Volatility

Apollo Investment has a beta of 1.09, indicating that its stock price is 9% more volatile than the S&P 500. Comparatively, Blackrock Muniyld California Quty Fd has a beta of 0.01, indicating that its stock price is 99% less volatile than the S&P 500.

Institutional & Insider Ownership

41.3% of Apollo Investment shares are held by institutional investors. Comparatively, 18.8% of Blackrock Muniyld California Quty Fd shares are held by institutional investors. 0.4% of Apollo Investment shares are held by insiders. Comparatively, 1.0% of Blackrock Muniyld California Quty Fd shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Apollo Investment and Blackrock Muniyld California Quty Fd’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Apollo Investment 31.99% 9.88% 5.25%
Blackrock Muniyld California Quty Fd N/A N/A N/A

Analyst Ratings

This is a summary of recent recommendations for Apollo Investment and Blackrock Muniyld California Quty Fd, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Apollo Investment 0 5 1 0 2.17
Blackrock Muniyld California Quty Fd 0 0 0 0 N/A

Apollo Investment currently has a consensus price target of $17.17, suggesting a potential upside of 8.44%. Given Apollo Investment’s higher probable upside, analysts clearly believe Apollo Investment is more favorable than Blackrock Muniyld California Quty Fd.

Earnings and Valuation

This table compares Apollo Investment and Blackrock Muniyld California Quty Fd’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Apollo Investment $255.08 million 4.21 $71.95 million $1.81 8.75
Blackrock Muniyld California Quty Fd N/A N/A N/A N/A N/A

Apollo Investment has higher revenue and earnings than Blackrock Muniyld California Quty Fd.

Summary

Apollo Investment beats Blackrock Muniyld California Quty Fd on 9 of the 11 factors compared between the two stocks.

About Apollo Investment

Apollo Investment Corporation is business development company specializing in middle market companies. It provides direct equity capital, mezzanine and senior secured loans, unsecured debt, and subordinated debt and loans. It also seeks to invest in PIPES transactions. The fund may also invest in securities of public companies that are thinly traded and may acquire investments in the secondary market and structured products. It prefers to invest in warrants, makes equity co-investments, and may also invest in cash equivalents, U.S. government securities, high-quality debt investments that mature in one year or less, high-yield bonds, distressed debt, non-U.S. investments, or securities of public companies that are not thinly traded. It also focuses on other investments such as collateralized loan obligations and credit-linked notes. The fund typically invests in building materials, business services, cable television, chemicals, consumer products, direct marketing, distribution, energy and utilities, financial services, healthcare, manufacturing, media, publishing, retail and transportation. It primarily invests between $20 million and $250 million in its portfolio companies. The fund seeks to make investments with stated maturities of five to 10 years.

About Blackrock Muniyld California Quty Fd

BlackRock MuniYield California Quality Fund, Inc. is a closed ended fixed income mutual fund launched by BlackRock, Inc. It is managed by BlackRock Advisors, LLC. The fund invests in fixed income markets. It invests in a portfolio of long-term investment-grade municipal obligations, the interest on which is exempt from Federal and California income taxes. The fund was formerly known as Blackrock MuniYield California Insured Fund, Inc. BlackRock MuniYield California Quality Fund, Inc. was formed on October 30, 1992 and is domiciled in United States.

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