Head-To-Head Review: BlackRock Enhanced Global Dividend Trust (BOE) and Harvest Capital Credit (HCAP)
BlackRock Enhanced Global Dividend Trust (NYSE: BOE) and Harvest Capital Credit (NASDAQ:HCAP) are both small-cap financials companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, profitability, institutional ownership, risk, valuation, earnings and dividends.
Volatility & Risk
BlackRock Enhanced Global Dividend Trust has a beta of 1.04, indicating that its stock price is 4% more volatile than the S&P 500. Comparatively, Harvest Capital Credit has a beta of 0.66, indicating that its stock price is 34% less volatile than the S&P 500.
Harvest Capital Credit pays an annual dividend of $1.35 per share and has a dividend yield of 12.0%. BlackRock Enhanced Global Dividend Trust does not pay a dividend. Harvest Capital Credit pays out 287.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Institutional & Insider Ownership
5.7% of Harvest Capital Credit shares are held by institutional investors. 9.5% of Harvest Capital Credit shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
This table compares BlackRock Enhanced Global Dividend Trust and Harvest Capital Credit’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|BlackRock Enhanced Global Dividend Trust||N/A||N/A||N/A|
|Harvest Capital Credit||14.76%||11.04%||6.80%|
This is a summary of current ratings for BlackRock Enhanced Global Dividend Trust and Harvest Capital Credit, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|BlackRock Enhanced Global Dividend Trust||0||0||0||0||N/A|
|Harvest Capital Credit||0||1||0||0||2.00|
Harvest Capital Credit has a consensus target price of $13.50, suggesting a potential upside of 19.57%. Given Harvest Capital Credit’s higher probable upside, analysts plainly believe Harvest Capital Credit is more favorable than BlackRock Enhanced Global Dividend Trust.
Valuation and Earnings
This table compares BlackRock Enhanced Global Dividend Trust and Harvest Capital Credit’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|BlackRock Enhanced Global Dividend Trust||N/A||N/A||N/A||N/A||N/A|
|Harvest Capital Credit||$20.89 million||3.51||$6.00 million||$0.47||24.02|
Harvest Capital Credit has higher revenue and earnings than BlackRock Enhanced Global Dividend Trust.
Harvest Capital Credit beats BlackRock Enhanced Global Dividend Trust on 8 of the 10 factors compared between the two stocks.
BlackRock Enhanced Global Dividend Trust Company Profile
BlackRock Enhanced Global Dividend Trust (the Trust), formerly BlackRock Global Opportunities Equity Trust, is a diversified, closed-end management investment company. The Trust’s investment objective is to provide current income and current gains, with a secondary objective of long-term capital appreciation. The Trust seeks to achieve its investment objectives by investing primarily in equity securities issued by companies located in countries throughout the world and utilizing an option writing (selling) strategy. The Trust focuses on investing in sectors, including information technology, financials, healthcare, materials, energy and utilities. The Trust invests at least 80% of its assets in equity securities or options on equity securities or indices or sectors of equity securities. The Trust invests amount of its total assets in foreign issuers. BlackRock Advisors, LLC is its investment advisor.
Harvest Capital Credit Company Profile
Harvest Capital Credit Corporation is an externally managed, closed-end, non-diversified management investment company. The Company operates as a business development company and provides customized financing solutions for small to mid-sized companies. Its investment objective is to generate both current income and capital appreciation by making direct investments in the form of subordinated debt, senior debt, and to a lesser extent, minority equity investments in privately-held the United States small to mid-sized companies. Its investment portfolio includes over 56.8% of senior secured term loans, 40.8% of junior secured term loans, 1.3% of equity investments and 1.1% of collateralized loan obligation (CLO) equity at fair value. It may also invest in other investments, such as loans to larger, publicly-traded companies, high-yield bonds and distressed debt securities. It may also invest in debt and equity securities issued by CLO funds. HCAP Advisors LLC is its investment adviser.
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