Reviewing StoneCastle Financial Corp (BANX) and Tortoise Energy Infrastructure Corporation (TYG)
StoneCastle Financial Corp (NASDAQ: BANX) and Tortoise Energy Infrastructure Corporation (NYSE:TYG) are both small-cap finance companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, institutional ownership, risk, valuation, dividends, earnings and analyst recommendations.
Valuation and Earnings
This table compares StoneCastle Financial Corp and Tortoise Energy Infrastructure Corporation’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|StoneCastle Financial Corp||N/A||N/A||N/A||$1.74||11.57|
|Tortoise Energy Infrastructure Corporation||N/A||N/A||N/A||N/A||N/A|
This table compares StoneCastle Financial Corp and Tortoise Energy Infrastructure Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|StoneCastle Financial Corp||66.25%||N/A||N/A|
|Tortoise Energy Infrastructure Corporation||N/A||N/A||N/A|
StoneCastle Financial Corp pays an annual dividend of $1.48 per share and has a dividend yield of 7.4%. Tortoise Energy Infrastructure Corporation pays an annual dividend of $2.62 per share and has a dividend yield of 9.2%. StoneCastle Financial Corp pays out 85.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Institutional & Insider Ownership
34.0% of StoneCastle Financial Corp shares are owned by institutional investors. Comparatively, 30.5% of Tortoise Energy Infrastructure Corporation shares are owned by institutional investors. 8.0% of StoneCastle Financial Corp shares are owned by insiders. Comparatively, 0.3% of Tortoise Energy Infrastructure Corporation shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Risk & Volatility
StoneCastle Financial Corp has a beta of 0.2, indicating that its share price is 80% less volatile than the S&P 500. Comparatively, Tortoise Energy Infrastructure Corporation has a beta of 1.26, indicating that its share price is 26% more volatile than the S&P 500.
This is a summary of current recommendations and price targets for StoneCastle Financial Corp and Tortoise Energy Infrastructure Corporation, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|StoneCastle Financial Corp||0||0||4||0||3.00|
|Tortoise Energy Infrastructure Corporation||0||0||1||0||3.00|
StoneCastle Financial Corp presently has a consensus price target of $22.38, indicating a potential upside of 11.15%. Tortoise Energy Infrastructure Corporation has a consensus price target of $34.00, indicating a potential upside of 19.01%. Given Tortoise Energy Infrastructure Corporation’s higher probable upside, analysts clearly believe Tortoise Energy Infrastructure Corporation is more favorable than StoneCastle Financial Corp.
StoneCastle Financial Corp Company Profile
StoneCastle Financial Corp. is a non-diversified, closed-end management investment company. The Company’s primary investment objective is to provide stockholders with current income, and to a lesser extent capital appreciation. The Company generally invests in the senior debt, subordinated debt, preferred shares and common stock of community banks. The Company’s investment portfolio includes term loans, debt securities, trust preferred securities, preferred shares of credit securitization, preferred securities, convertible preferred stock, common stock, exchange traded fund, limited partnership interest and money market fund. The Company invests in bank issuers of various locations, such as California, Colorado, Florida, Georgia, Illinois, Kansas, Maine, Maryland, New Jersey, New York, Ohio, North Carolina, Oklahoma, South Carolina, Texas and West Virginia.
Tortoise Energy Infrastructure Corporation Company Profile
Tortoise Energy Infrastructure Corporation (the Fund) is a non-diversified, closed-end management investment company. The Fund seeks a high level of total return with a focus on current distributions paid to stockholders. The Fund invests primarily in equity securities of master limited partnerships (MLPs) and their affiliates that transport, gather, process or store natural gas, natural gas liquids (NGLs), crude oil and refined petroleum products. Under normal circumstances, the Fund invests at least 90% of its total assets (including assets obtained through leverage) in securities of energy infrastructure companies and at least 70% of its total assets in equity securities of MLPs. The Fund may invest up to 30% of its total assets in restricted securities, primarily through direct placements. The Fund may invest up to 25% of its total assets in debt securities, including those rated below investment grade. Tortoise Capital Advisors, L.L.C. is the investment advisor of the Fund.
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