American Capital Senior Floating (NASDAQ: ACSF) and BlackRock LT Municipal Advantage Trust (NYSE:BTA) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, earnings, institutional ownership, valuation, risk, analyst recommendations and dividends.

Dividends

American Capital Senior Floating pays an annual dividend of $1.16 per share and has a dividend yield of 9.8%. BlackRock LT Municipal Advantage Trust does not pay a dividend. American Capital Senior Floating pays out 37.3% of its earnings in the form of a dividend.

Analyst Ratings

This is a summary of current recommendations and price targets for American Capital Senior Floating and BlackRock LT Municipal Advantage Trust, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
American Capital Senior Floating 0 0 0 0 N/A
BlackRock LT Municipal Advantage Trust 2 5 6 0 2.31

BlackRock LT Municipal Advantage Trust has a consensus target price of $356.92, suggesting a potential upside of 2,881.81%. Given BlackRock LT Municipal Advantage Trust’s higher probable upside, analysts plainly believe BlackRock LT Municipal Advantage Trust is more favorable than American Capital Senior Floating.

Institutional & Insider Ownership

35.5% of American Capital Senior Floating shares are held by institutional investors. 0.2% of American Capital Senior Floating shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares American Capital Senior Floating and BlackRock LT Municipal Advantage Trust’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
American Capital Senior Floating N/A N/A N/A $3.11 3.81
BlackRock LT Municipal Advantage Trust N/A N/A N/A N/A N/A

Profitability

This table compares American Capital Senior Floating and BlackRock LT Municipal Advantage Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
American Capital Senior Floating 119.98% 6.97% 3.69%
BlackRock LT Municipal Advantage Trust -45.66% -3.37% -2.00%

Summary

American Capital Senior Floating beats BlackRock LT Municipal Advantage Trust on 6 of the 9 factors compared between the two stocks.

American Capital Senior Floating Company Profile

American Capital Senior Floating, Ltd. is a non-diversified closed-end investment management company. The Company’s investment objective is to provide attractive, risk-adjusted returns over the long term primarily through current income while seeking to preserve its capital. It manages a leveraged portfolio composed primarily of diversified investments in first lien and second lien floating rate loans principally to the United States-based companies (collectively, Senior Floating Rate Loans or SFRLs), which are referred to as leveraged loans. It invests in equity tranches of collateralized loan obligations (CLOs), which are securitized vehicles collateralized primarily by SFRLs, and it may invest in debt tranches of CLOs. In addition, it may selectively invest in loans issued by middle market companies, mezzanine and unitranche loans and high yield bonds. It has over 80% of its assets in Senior Floating Rate Loans. The Company is managed by American Capital ACSF Management, LLC.

BlackRock LT Municipal Advantage Trust Company Profile

BlackRock Long-Term Municipal Advantage Trust (the Trust) is a non-diversified, closed-end management investment company. The Trust’s investment objective is to provide current income exempt from regular federal income tax. The Trust seeks to achieve its investment objective by investing, under normal market conditions, at least 80% of its assets in municipal obligations and derivative instruments with exposure to such municipal obligations, in each case that are exempt from federal income tax (except that the interest may be subject to the federal alternative minimum tax). The Trust invests primarily in long-term municipal bonds with a maturity of more than 10 years at the time of investment. The Trust’s municipal bond portfolio will have a dollar-weighted average maturity of more than 10 years. The Trust may invest directly in such securities or synthetically through the use of derivatives. BlackRock Advisors, LLC is the investment manager of the Trust.

Receive News & Ratings for American Capital Senior Floating Ltd. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for American Capital Senior Floating Ltd. and related companies with MarketBeat.com's FREE daily email newsletter.