BlackRock Capital Investment Corporation (NASDAQ: BKCC) and Blackrock Taxable Municipal Bond Trust (NYSE:BBN) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, valuation, risk, analyst recommendations, institutional ownership, earnings and profitability.

Profitability

This table compares BlackRock Capital Investment Corporation and Blackrock Taxable Municipal Bond Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
BlackRock Capital Investment Corporation -5.04% 7.20% 4.51%
Blackrock Taxable Municipal Bond Trust N/A N/A N/A

Insider and Institutional Ownership

29.0% of BlackRock Capital Investment Corporation shares are held by institutional investors. 1.3% of BlackRock Capital Investment Corporation shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Valuation and Earnings

This table compares BlackRock Capital Investment Corporation and Blackrock Taxable Municipal Bond Trust’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
BlackRock Capital Investment Corporation N/A N/A N/A ($0.07) -107.07
Blackrock Taxable Municipal Bond Trust N/A N/A N/A N/A N/A

Dividends

BlackRock Capital Investment Corporation pays an annual dividend of $0.72 per share and has a dividend yield of 9.6%. Blackrock Taxable Municipal Bond Trust does not pay a dividend. BlackRock Capital Investment Corporation pays out -1,028.6% of its earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of recent ratings and price targets for BlackRock Capital Investment Corporation and Blackrock Taxable Municipal Bond Trust, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BlackRock Capital Investment Corporation 0 1 0 0 2.00
Blackrock Taxable Municipal Bond Trust 0 0 0 0 N/A

BlackRock Capital Investment Corporation presently has a consensus price target of $8.00, indicating a potential upside of 6.74%. Given BlackRock Capital Investment Corporation’s higher probable upside, research analysts clearly believe BlackRock Capital Investment Corporation is more favorable than Blackrock Taxable Municipal Bond Trust.

Summary

BlackRock Capital Investment Corporation beats Blackrock Taxable Municipal Bond Trust on 7 of the 8 factors compared between the two stocks.

BlackRock Capital Investment Corporation Company Profile

BlackRock Capital Investment Corporation is an externally-managed, non-diversified, closed-end management investment company. The Company’s investment objective is to generate both current income and capital appreciation through its debt and equity investments. The Company provides middle-market companies with a range of financing solutions, including senior and junior secured, unsecured and subordinated debt securities and loans, and equity securities. Its targeted investment typically ranges between $10 million and $50 million. The Company generally seeks to invest in companies that operate in a range of industries. The Company’s investments are in senior and junior secured, unsecured and subordinated loans to the United States private and certain public middle-market companies. The Company’s investment advisor is BlackRock Advisors, LLC.

Blackrock Taxable Municipal Bond Trust Company Profile

BlackRock Taxable Municipal Bond Trust (the Trust) is a non-diversified, closed-end management investment company. The Trust’s investment objective is to seek high current income, with a secondary objective of capital appreciation. The Trust seeks to achieve its investment objectives by investing primarily in a portfolio of taxable municipal securities, including Build America Bonds (BABs), issued by state and local governments to finance capital projects, such as public schools, roads, transportation infrastructure, bridges, ports and public buildings. It also has the ability to invest up to 20% of its managed assets in securities other than taxable municipal securities. It may invest at least 80% of its managed assets in securities that at the time of purchase are investment-grade quality. It invests in various sectors, including utilities, transportation, education, tobacco, commercial services and supplies, and housing. The Trust’s investment manager is BlackRock Advisors, LLC.

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