Comparing Silver Spike Investment (NASDAQ:SSIC) and Virtus Diversified Income & Convertible Fund (NYSE:ACV)

Profitability

This table compares Silver Spike Investment and Virtus Diversified Income & Convertible Fund’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Silver Spike Investment	44.96%	5.62%	5.37%
Virtus Diversified Income & Convertible Fund	N/A	N/A	N/A

Valuation and Earnings

This table compares Silver Spike Investment and Virtus Diversified Income & Convertible Fund”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Silver Spike Investment	$10.84 million	5.34	$7.34 million	$0.87	10.71
Virtus Diversified Income & Convertible Fund	$54.22 million	N/A	N/A	$1.65	16.50

Silver Spike Investment has higher earnings, but lower revenue than Virtus Diversified Income & Convertible Fund. Silver Spike Investment is trading at a lower price-to-earnings ratio than Virtus Diversified Income & Convertible Fund, indicating that it is currently the more affordable of the two stocks.

Dividends

Silver Spike Investment pays an annual dividend of $1.00 per share and has a dividend yield of 10.7%. Virtus Diversified Income & Convertible Fund pays an annual dividend of $2.54 per share and has a dividend yield of 9.3%. Silver Spike Investment pays out 114.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Virtus Diversified Income & Convertible Fund pays out 153.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Silver Spike Investment is clearly the better dividend stock, given its higher yield and lower payout ratio.

Insider & Institutional Ownership

4.4% of Silver Spike Investment shares are held by institutional investors. 72.7% of Silver Spike Investment shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Silver Spike Investment beats Virtus Diversified Income & Convertible Fund on 7 of the 10 factors compared between the two stocks.

About Silver Spike Investment

Silver Spike Investment Corp., is a a business development company. It is a specialty finance company, focuses on investing across the cannabis ecosystem through investments in the form of direct loans to, and equity ownership of, privately held cannabis companies. It intends to partner with private equity firms, entrepreneurs, business owners, and management teams to provide credit and equity financing alternatives to support buyouts, recapitalizations, growth initiatives, refinancings, and acquisitions across cannabis companies, including cannabis-enabling technology companies, cannabis-related health and wellness companies, and hemp and CBD distribution companies. The company was founded in 2021 and is based in New York, New York.

About Virtus Diversified Income & Convertible Fund

Virtus Diversified Income & Convertible Fund is a closed-ended balanced mutual fund launched and managed by Allianz Global Investors Fund Management LLC. The fund is co-managed by Allianz Global Investors U.S. LLC. It invests in the public equity and fixed income markets. The fund primarily invests in diversified portfolio of convertible securities, income-producing equity securities, and income-producing debt and other instruments of varying maturities. It employs fundamental analysis along with bottom-up stock picking approach. Virtus Diversified Income & Convertible Fund was formed In May 27, 2015 and is domiciled in United States.