Financial Contrast: BlackRock Enhanced Global Dividend Trust (BOE) & FS Investment Corporation (FSIC)
BlackRock Enhanced Global Dividend Trust (NYSE: BOE) and FS Investment Corporation (NYSE:FSIC) are both financials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, institutional ownership, valuation, earnings, dividends, risk and analyst recommendations.
This is a breakdown of recent ratings and recommmendations for BlackRock Enhanced Global Dividend Trust and FS Investment Corporation, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|BlackRock Enhanced Global Dividend Trust||0||0||0||0||N/A|
|FS Investment Corporation||0||4||0||0||2.00|
FS Investment Corporation has a consensus price target of $9.67, suggesting a potential upside of 16.47%. Given FS Investment Corporation’s higher possible upside, analysts plainly believe FS Investment Corporation is more favorable than BlackRock Enhanced Global Dividend Trust.
Institutional and Insider Ownership
32.5% of FS Investment Corporation shares are held by institutional investors. 1.0% of FS Investment Corporation shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
This table compares BlackRock Enhanced Global Dividend Trust and FS 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|
|FS Investment Corporation||59.88%||8.92%||4.92%|
FS Investment Corporation pays an annual dividend of $0.89 per share and has a dividend yield of 10.7%. BlackRock Enhanced Global Dividend Trust does not pay a dividend. FS Investment Corporation pays out 87.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Valuation & Earnings
This table compares BlackRock Enhanced Global Dividend Trust and FS Investment Corporation’s top-line revenue, earnings per share (EPS) 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|
|FS Investment Corporation||N/A||N/A||N/A||$1.02||8.14|
FS Investment Corporation beats BlackRock Enhanced Global Dividend Trust on 7 of the 8 factors compared between the two stocks.
BlackRock Enhanced Global Dividend Trust Company Profile
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.
FS Investment Corporation Company Profile
FS Investment Corporation is an externally managed, non-diversified, closed-end management investment company. The Company’s investment objectives are to generate current income and long-term capital appreciation. Its portfolio consists primarily of investments in senior secured loans and second lien secured loans of the private United States middle market companies and subordinated loans of the private United States companies. It may purchase interests in loans or make other debt investments, including investments in senior secured bonds, through secondary market transactions in the over-the-counter market or directly from target companies as primary market or directly originated investments. It invests in a range of industries, including capital goods; consumer services; consumer durables and apparel; materials; commercial and professional services, and diversified financials. Its investment advisor is FB Income Advisor, LLC.
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