Reviewing Medley Capital Corporation (MCC) & BlackRock Enhanced Global Dividend Trust (BOE)
Medley Capital Corporation (NYSE: MCC) and BlackRock Enhanced Global Dividend Trust (NYSE:BOE) are both small-cap finance companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, earnings, profitability, institutional ownership, risk, valuation and analyst recommendations.
This is a breakdown of recent ratings and target prices for Medley Capital Corporation and BlackRock Enhanced Global Dividend Trust, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Medley Capital Corporation||0||5||0||0||2.00|
|BlackRock Enhanced Global Dividend Trust||0||0||0||0||N/A|
Medley Capital Corporation presently has a consensus target price of $7.00, indicating a potential upside of 21.11%. Given Medley Capital Corporation’s higher probable upside, research analysts clearly believe Medley Capital Corporation is more favorable than BlackRock Enhanced Global Dividend Trust.
This table compares Medley Capital Corporation and BlackRock Enhanced Global Dividend Trust’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Medley Capital Corporation||-6.07%||8.04%||3.92%|
|BlackRock Enhanced Global Dividend Trust||N/A||N/A||N/A|
Insider & Institutional Ownership
29.5% of Medley Capital Corporation shares are held by institutional investors. 8.7% of Medley Capital Corporation shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Valuation & Earnings
This table compares Medley Capital Corporation and BlackRock Enhanced Global Dividend Trust’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Medley Capital Corporation||$120.75 million||2.61||-$27.96 million||($0.10)||-57.80|
|BlackRock Enhanced Global Dividend Trust||N/A||N/A||N/A||N/A||N/A|
BlackRock Enhanced Global Dividend Trust has higher revenue, but lower earnings than Medley Capital Corporation.
Risk & Volatility
Medley Capital Corporation has a beta of 1.21, meaning that its stock price is 21% more volatile than the S&P 500. Comparatively, 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.
Medley Capital Corporation pays an annual dividend of $0.64 per share and has a dividend yield of 11.1%. BlackRock Enhanced Global Dividend Trust does not pay a dividend. Medley Capital Corporation pays out -640.0% of its earnings in the form of a dividend.
Medley Capital Corporation beats BlackRock Enhanced Global Dividend Trust on 9 of the 10 factors compared between the two stocks.
Medley Capital Corporation Company Profile
Medley Capital Corporation is a non-diversified closed-end management investment company. The Company’s investment objective is to generate current income and capital appreciation by lending directly to privately-held middle market companies, primarily through directly originated transactions to help these companies expand their business, refinance and make acquisitions. Its investment portfolio includes senior secured first lien term loans, senior secured second lien term loans, unitranche, senior secured first lien notes, subordinated notes and warrants and minority equity securities. It may invest up to 100% of its assets in securities acquired directly from issuers in privately negotiated transactions. Its portfolio of investments includes industries, including banking, finance, insurance and real estate; construction and building; healthcare and pharmaceuticals; beverage and food, and telecommunications. MCC Advisors LLC is the Company’s investment advisor.
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.
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