American Capital Senior Floating (NASDAQ: ACSF) and Tortoise Energy Infrastructure (NYSE:TYG) are both small-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, dividends, valuation, earnings and profitability.

Dividends

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American Capital Senior Floating pays an annual dividend of $1.26 per share and has a dividend yield of 11.5%. Tortoise Energy Infrastructure pays an annual dividend of $2.62 per share and has a dividend yield of 10.4%. American Capital Senior Floating pays out 40.5% of its earnings in the form of a dividend.

Profitability

This table compares American Capital Senior Floating and Tortoise Energy Infrastructure’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
American Capital Senior Floating 32.54% 4.51% 2.43%
Tortoise Energy Infrastructure N/A N/A N/A

Institutional & Insider Ownership

25.9% of American Capital Senior Floating shares are owned by institutional investors. Comparatively, 29.6% of Tortoise Energy Infrastructure shares are owned by institutional investors. 0.2% of American Capital Senior Floating shares are owned by company insiders. Comparatively, 0.3% of Tortoise Energy Infrastructure shares are owned by company 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.

Earnings & Valuation

This table compares American Capital Senior Floating and Tortoise Energy Infrastructure’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
American Capital Senior Floating $17.52 million 6.28 $5.70 million $3.11 3.54
Tortoise Energy Infrastructure N/A N/A N/A N/A N/A

American Capital Senior Floating has higher revenue and earnings than Tortoise Energy Infrastructure.

Volatility & Risk

American Capital Senior Floating has a beta of 1.17, meaning that its stock price is 17% more volatile than the S&P 500. Comparatively, Tortoise Energy Infrastructure has a beta of 1.21, meaning that its stock price is 21% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and price targets for American Capital Senior Floating and Tortoise Energy Infrastructure, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
American Capital Senior Floating 0 0 0 0 N/A
Tortoise Energy Infrastructure 0 0 1 0 3.00

Tortoise Energy Infrastructure has a consensus target price of $34.00, suggesting a potential upside of 34.33%. Given Tortoise Energy Infrastructure’s higher probable upside, analysts clearly believe Tortoise Energy Infrastructure is more favorable than American Capital Senior Floating.

Summary

Tortoise Energy Infrastructure beats American Capital Senior Floating on 6 of the 11 factors compared between the two stocks.

About American Capital Senior Floating

American Capital Senior Floating, Ltd. is a non-diversified closed-end investment management company. The Company’s investment objective is to provide attractive, risk-adjusted returns over the long term primarily through current income while seeking to preserve its capital. It manages a leveraged portfolio composed primarily of diversified investments in first lien and second lien floating rate loans principally to the United States-based companies (collectively, Senior Floating Rate Loans or SFRLs), which are referred to as leveraged loans. It invests in equity tranches of collateralized loan obligations (CLOs), which are securitized vehicles collateralized primarily by SFRLs, and it may invest in debt tranches of CLOs. In addition, it may selectively invest in loans issued by middle market companies, mezzanine and unitranche loans and high yield bonds. It has over 80% of its assets in Senior Floating Rate Loans. The Company is managed by American Capital ACSF Management, LLC.

About Tortoise Energy Infrastructure

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.

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