Invesco California Value Municipal Income Trust (NYSE: VCV) and Eagle Point Credit Company (NYSE:ECC) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, risk, analyst recommendations, earnings, valuation, profitabiliy and institutional ownership.

Valuation & Earnings

This table compares Invesco California Value Municipal Income Trust and Eagle Point Credit Company’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Invesco California Value Municipal Income Trust N/A N/A N/A N/A N/A
Eagle Point Credit Company N/A N/A N/A $6.13 3.37

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Invesco California Value Municipal Income Trust and Eagle Point Credit Company, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Invesco California Value Municipal Income Trust 0 0 0 0 N/A
Eagle Point Credit Company 0 1 4 0 2.80

Eagle Point Credit Company has a consensus target price of $21.00, suggesting a potential upside of 1.69%. Given Eagle Point Credit Company’s higher possible upside, analysts clearly believe Eagle Point Credit Company is more favorable than Invesco California Value Municipal Income Trust.

Risk & Volatility

Invesco California Value Municipal Income Trust has a beta of -0.1, suggesting that its stock price is 110% less volatile than the S&P 500. Comparatively, Eagle Point Credit Company has a beta of 0.34, suggesting that its stock price is 66% less volatile than the S&P 500.

Profitability

This table compares Invesco California Value Municipal Income Trust and Eagle Point Credit Company’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Invesco California Value Municipal Income Trust N/A N/A N/A
Eagle Point Credit Company 159.47% N/A N/A

Insider and Institutional Ownership

11.7% of Invesco California Value Municipal Income Trust shares are held by institutional investors. Comparatively, 59.6% of Eagle Point Credit Company shares are held by institutional investors. 1.0% of Invesco California Value Municipal Income Trust shares are held by company insiders. Comparatively, 0.7% of Eagle Point Credit Company shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Dividends

Invesco California Value Municipal Income Trust pays an annual dividend of $0.65 per share and has a dividend yield of 5.1%. Eagle Point Credit Company pays an annual dividend of $2.40 per share and has a dividend yield of 11.6%. Eagle Point Credit Company pays out 39.2% of its earnings in the form of a dividend.

Summary

Eagle Point Credit Company beats Invesco California Value Municipal Income Trust on 6 of the 8 factors compared between the two stocks.

Invesco California Value Municipal Income Trust Company Profile

Invesco Van Kampen California Value Municipal Income Trust (the Trust), formerly Invesco California Value Municipal Income Trust, is a diversified, closed-end management investment trust. The Trust’s investment objective is to seek to provide common shareholders with a high level of current income exempt from federal and California income taxes, consistent with preservation of capital. The Trust will invest substantially all of its assets in California municipal securities rated investment grade at the time of investment. The Trust seeks to achieve its investment objective by investing primarily in California municipal securities that are rated investment grade at the time of investment. Municipal securities include municipal bonds, municipal notes, municipal commercial paper and lease obligations. Invesco Advisers, Inc. serves as its investment advisor.

Eagle Point Credit Company Company Profile

Eagle Point Credit Company Inc. is a non-diversified, closed-end management investment company. The Company’s primary investment objective is to generate high current income, with a secondary objective to generate capital appreciation. The Company primarily invests in equity and junior debt tranches of collateralized loan obligations (CLOs) that are collateralized by a portfolio consisting primarily of the below investment grade United States senior secured loans. It may also invest in other securities and instruments related to these investments. The Company’s portfolio includes its investments in various industries, such as business equipment and services; healthcare; electronics/electrical; leisure goods/activities/movies; retailers (except food and drug); chemicals and plastics; telecommunications; financial intermediaries, and utilities. The Company’s advisor is Eagle Point Credit Management LLC.

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