Critical Comparison: Tortoise Energy Infrastructure Corporation (TYG) and StoneCastle Financial Corp (BANX)
Tortoise Energy Infrastructure Corporation (NYSE: TYG) and StoneCastle Financial Corp (NASDAQ:BANX) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their risk, earnings, institutional ownership, dividends, analyst recommendations, valuation and profitability.
Tortoise Energy Infrastructure Corporation pays an annual dividend of $2.62 per share and has a dividend yield of 9.1%. StoneCastle Financial Corp pays an annual dividend of $1.52 per share and has a dividend yield of 7.4%. StoneCastle Financial Corp pays out 87.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
This is a summary of recent ratings and recommmendations for Tortoise Energy Infrastructure Corporation and StoneCastle Financial Corp, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Tortoise Energy Infrastructure Corporation||0||0||1||0||3.00|
|StoneCastle Financial Corp||0||0||4||0||3.00|
Tortoise Energy Infrastructure Corporation currently has a consensus price target of $34.00, indicating a potential upside of 17.69%. StoneCastle Financial Corp has a consensus price target of $22.38, indicating a potential upside of 8.51%. Given Tortoise Energy Infrastructure Corporation’s higher probable upside, equities research analysts plainly believe Tortoise Energy Infrastructure Corporation is more favorable than StoneCastle Financial Corp.
Insider and Institutional Ownership
30.5% of Tortoise Energy Infrastructure Corporation shares are held by institutional investors. Comparatively, 34.0% of StoneCastle Financial Corp shares are held by institutional investors. 0.3% of Tortoise Energy Infrastructure Corporation shares are held by company insiders. Comparatively, 8.0% of StoneCastle Financial Corp 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.
This table compares Tortoise Energy Infrastructure Corporation and StoneCastle Financial Corp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Tortoise Energy Infrastructure Corporation||N/A||N/A||N/A|
|StoneCastle Financial Corp||66.25%||N/A||N/A|
Risk and Volatility
Tortoise Energy Infrastructure Corporation has a beta of 1.27, suggesting that its stock price is 27% more volatile than the S&P 500. Comparatively, StoneCastle Financial Corp has a beta of 0.21, suggesting that its stock price is 79% less volatile than the S&P 500.
Earnings and Valuation
This table compares Tortoise Energy Infrastructure Corporation and StoneCastle Financial Corp’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Tortoise Energy Infrastructure Corporation||N/A||N/A||N/A||N/A||N/A|
|StoneCastle Financial Corp||N/A||N/A||N/A||$1.74||11.85|
About Tortoise Energy Infrastructure Corporation
Tortoise Energy Infrastructure Corporation (the Fund) is a non-diversified, closed-end management investment company. The Fund seeks a high level of total return with a focus on current distributions paid to stockholders. The Fund invests primarily in equity securities of master limited partnerships (MLPs) and their affiliates that transport, gather, process or store natural gas, natural gas liquids (NGLs), crude oil and refined petroleum products. Under normal circumstances, the Fund invests at least 90% of its total assets (including assets obtained through leverage) in securities of energy infrastructure companies and at least 70% of its total assets in equity securities of MLPs. The Fund may invest up to 30% of its total assets in restricted securities, primarily through direct placements. The Fund may invest up to 25% of its total assets in debt securities, including those rated below investment grade. Tortoise Capital Advisors, L.L.C. is the investment advisor of the Fund.
About StoneCastle Financial Corp
StoneCastle Financial Corp. is a non-diversified, closed-end management investment company. The Company’s primary investment objective is to provide stockholders with current income, and to a lesser extent capital appreciation. The Company generally invests in the senior debt, subordinated debt, preferred shares and common stock of community banks. The Company’s investment portfolio includes term loans, debt securities, trust preferred securities, preferred shares of credit securitization, preferred securities, convertible preferred stock, common stock, exchange traded fund, limited partnership interest and money market fund. The Company invests in bank issuers of various locations, such as California, Colorado, Florida, Georgia, Illinois, Kansas, Maine, Maryland, New Jersey, New York, Ohio, North Carolina, Oklahoma, South Carolina, Texas and West Virginia.
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