Financial Review: BlackRock Enhanced Global Dividend Trust (BOE) and Gladstone Investment Corporation (GAIN)
BlackRock Enhanced Global Dividend Trust (NYSE: BOE) and Gladstone Investment Corporation (NASDAQ:GAIN) are both financials companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, analyst recommendations, profitabiliy, institutional ownership, valuation, risk and dividends.
This table compares BlackRock Enhanced Global Dividend Trust and Gladstone Investment Corporation’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|
|Gladstone Investment Corporation||55.52%||6.95%||4.21%|
Insider and Institutional Ownership
20.2% of Gladstone Investment Corporation shares are held by institutional investors. 2.4% of Gladstone Investment Corporation shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
This is a breakdown of recent recommendations and price targets for BlackRock Enhanced Global Dividend Trust and Gladstone Investment Corporation, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|BlackRock Enhanced Global Dividend Trust||0||0||0||0||N/A|
|Gladstone Investment Corporation||0||1||1||0||2.50|
Gladstone Investment Corporation has a consensus price target of $9.50, suggesting a potential downside of 2.26%. Given Gladstone Investment Corporation’s higher probable upside, analysts plainly believe Gladstone Investment Corporation is more favorable than BlackRock Enhanced Global Dividend Trust.
Earnings & Valuation
This table compares BlackRock Enhanced Global Dividend Trust and Gladstone Investment Corporation’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|BlackRock Enhanced Global Dividend Trust||N/A||N/A||N/A||N/A||N/A|
|Gladstone Investment Corporation||N/A||N/A||N/A||$0.93||10.45|
Gladstone Investment Corporation pays an annual dividend of $0.77 per share and has a dividend yield of 7.9%. BlackRock Enhanced Global Dividend Trust does not pay a dividend. Gladstone Investment Corporation pays out 82.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Gladstone Investment Corporation beats BlackRock Enhanced Global Dividend Trust on 8 of the 9 factors compared between the two stocks.
About BlackRock Enhanced Global Dividend Trust
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.
About Gladstone Investment Corporation
Gladstone Investment Corporation is an externally managed, closed-end, non-diversified management investment company. The Company’s investment objectives are to achieve and grow current income by investing in debt securities of established businesses that it believes will provide stable earnings and cash flow to pay expenses, make principal and interest payments on its outstanding indebtedness and make distributions to stockholders that grow over time, and provide its stockholders with long-term capital appreciation in the value of its assets by investing in equity securities, generally in combination with the aforementioned debt securities, of businesses that it believes can grow over time to permit it to sell its equity investments for capital gains. It has investments in sectors, such as chemicals, plastics, and rubber, and home and office furnishings, house wares, and durable consumer products, among others. Its investment advisor is Gladstone Management Corporation.
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