Invesco Bond Fund (VBF) and Capitala Finance Corp. (CPTA) Head to Head Analysis
Invesco Bond Fund (NYSE: VBF) and Capitala Finance Corp. (NASDAQ:CPTA) are both small-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, valuation, profitability, earnings, institutional ownership, analyst recommendations and risk.
Valuation & Earnings
This table compares Invesco Bond Fund and Capitala Finance Corp.’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Invesco Bond Fund||N/A||N/A||N/A||N/A||N/A|
|Capitala Finance Corp.||$68.31 million||1.85||$9.15 million||$0.11||72.10|
Capitala Finance Corp. has higher revenue and earnings than Invesco Bond Fund.
This is a breakdown of current ratings and price targets for Invesco Bond Fund and Capitala Finance Corp., as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Invesco Bond Fund||0||0||0||0||N/A|
|Capitala Finance Corp.||0||4||3||0||2.43|
Capitala Finance Corp. has a consensus target price of $14.92, indicating a potential upside of 88.10%. Given Capitala Finance Corp.’s higher possible upside, analysts clearly believe Capitala Finance Corp. is more favorable than Invesco Bond Fund.
This table compares Invesco Bond Fund and Capitala Finance Corp.’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Invesco Bond Fund||N/A||N/A||N/A|
|Capitala Finance Corp.||3.04%||7.49%||3.19%|
Volatility & Risk
Invesco Bond Fund has a beta of 0.22, indicating that its share price is 78% less volatile than the S&P 500. Comparatively, Capitala Finance Corp. has a beta of 1.07, indicating that its share price is 7% more volatile than the S&P 500.
Insider & Institutional Ownership
19.8% of Invesco Bond Fund shares are owned by institutional investors. Comparatively, 26.5% of Capitala Finance Corp. shares are owned by institutional investors. 1.0% of Invesco Bond Fund shares are owned by company insiders. Comparatively, 8.4% of Capitala Finance Corp. shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Invesco Bond Fund pays an annual dividend of $0.84 per share and has a dividend yield of 4.2%. Capitala Finance Corp. pays an annual dividend of $1.00 per share and has a dividend yield of 12.6%. Capitala Finance Corp. pays out 909.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Capitala Finance Corp. beats Invesco Bond Fund on 10 of the 11 factors compared between the two stocks.
Invesco Bond Fund Company Profile
Invesco Bond Fund is a diversified, closed-end management investment company. The Fund’s investment objective is to seek interest income while conserving capital. The Fund invests primarily in fixed-rate the United States investment-grade corporate bonds with flexibility to integrate approximately 20% of its total assets in non-investment-grade, the United States dollar denominated and non-United States dollar denominated securities of foreign issuers (both developed and emerging markets). The Fund also invests in government securities, asset-backed securities, commercial mortgage-backed securities and residential mortgage-backed securities. The Fund also invests in derivatives and other instruments that have similar economic characteristics to securities, in which it invests. Invesco Advisers, Inc. serves as the investment advisor of the Fund.
Capitala Finance Corp. Company Profile
Capitala Finance Corp. is an externally managed non-diversified, closed-end management investment company. The Company’s investment objective is to generate both current income and capital appreciation through debt and equity investments. Both directly and through its subsidiaries that are licensed by the United States Small Business Administration (SBA), the Company offers financing to business owners, management teams and financial sponsors for change of ownership transactions, recapitalizations, strategic acquisitions, business expansion and other growth initiatives. The Company provides capital to lower and traditional middle-market companies in the United States, with a non-exclusive emphasis on the Southeast, Southwest and Mid-Atlantic regions. The Company invests in first lien, second lien and subordinated loans. The Company’s investment advisor is Capitala Investment Advisors, LLC.
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