Reviewing BlackRock Enhanced Global Dividend Trust (BOE) and Solar Senior Capital (SUNS)
BlackRock Enhanced Global Dividend Trust (NYSE: BOE) and Solar Senior Capital (NASDAQ:SUNS) are both small-cap financials companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, analyst recommendations, profitability, valuation, earnings, risk and institutional ownership.
Institutional & Insider Ownership
30.2% of Solar Senior Capital shares are held by institutional investors. 5.6% of Solar Senior Capital shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Risk and Volatility
BlackRock Enhanced Global Dividend Trust has a beta of 1.06, meaning that its stock price is 6% more volatile than the S&P 500. Comparatively, Solar Senior Capital has a beta of 0.63, meaning that its stock price is 37% less volatile than the S&P 500.
This is a summary of recent recommendations and price targets for BlackRock Enhanced Global Dividend Trust and Solar Senior Capital, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|BlackRock Enhanced Global Dividend Trust||0||0||0||0||N/A|
|Solar Senior Capital||0||0||1||0||3.00|
Solar Senior Capital has a consensus target price of $18.50, suggesting a potential upside of 2.27%. Given Solar Senior Capital’s higher probable upside, analysts plainly believe Solar Senior Capital is more favorable than BlackRock Enhanced Global Dividend Trust.
This table compares BlackRock Enhanced Global Dividend Trust and Solar Senior Capital’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|
|Solar Senior Capital||76.43%||8.39%||4.48%|
Solar Senior Capital pays an annual dividend of $1.41 per share and has a dividend yield of 7.8%. BlackRock Enhanced Global Dividend Trust does not pay a dividend. Solar Senior Capital pays out 97.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Valuation & Earnings
This table compares BlackRock Enhanced Global Dividend Trust and Solar Senior Capital’s 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|
|Solar Senior Capital||$27.20 million||10.66||$24.25 million||$1.44||12.56|
Solar Senior Capital has higher revenue and earnings than BlackRock Enhanced Global Dividend Trust.
Solar Senior Capital beats BlackRock Enhanced Global Dividend Trust on 9 of the 11 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.
Solar Senior Capital Company Profile
Solar Senior Capital Ltd. is a closed-end, externally managed, non-diversified management investment company. The Company’s investment objective is to seek to maximize current income consistent with the preservation of capital. The Company seeks to achieve its investment objective by directly and indirectly investing in senior loans, including first lien, unitranche, and second lien debt instruments, made to private middle-market companies whose debt is rated below investment grade, which it refers to collectively as senior loans. It may also invest in debt of public companies that are thinly traded or in equity securities. Under normal market conditions, at least 80% of the value of its net assets (including the amount of any borrowings for investment purposes) will be invested in senior loans. It invests in privately held the United States middle-market companies. Its investment activities are managed by Solar Capital Partners, LLC (Solar Capital Partners or the Investment Advisor).
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