Comparing BlackRock Enhanced Global Dividend Trust (BOE) & THL Credit (TCRD)

BlackRock Enhanced Global Dividend Trust (NYSE: BOE) and THL Credit (NASDAQ:TCRD) are both small-cap financials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, earnings, dividends, valuation, profitability and institutional ownership.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for BlackRock Enhanced Global Dividend Trust and THL Credit, 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
THL Credit 0 5 2 0 2.29

THL Credit has a consensus price target of $10.70, suggesting a potential upside of 17.58%. Given THL Credit’s higher probable upside, analysts clearly believe THL Credit is more favorable than BlackRock Enhanced Global Dividend Trust.

Volatility & Risk

BlackRock Enhanced Global Dividend Trust has a beta of 1.04, meaning that its stock price is 4% more volatile than the S&P 500. Comparatively, THL Credit has a beta of 1.11, meaning that its stock price is 11% more volatile than the S&P 500.

Profitability

This table compares BlackRock Enhanced Global Dividend Trust and THL Credit’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
THL Credit 23.15% 10.53% 5.78%

Insider & Institutional Ownership

43.7% of THL Credit shares are owned by institutional investors. 9.4% of THL Credit shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Dividends

THL Credit pays an annual dividend of $1.08 per share and has a dividend yield of 11.9%. BlackRock Enhanced Global Dividend Trust does not pay a dividend. THL Credit pays out 192.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Earnings & Valuation

This table compares BlackRock Enhanced Global Dividend Trust and THL Credit’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
BlackRock Enhanced Global Dividend Trust N/A N/A N/A N/A N/A
THL Credit $84.58 million 3.51 $17.14 million $0.56 16.25

THL Credit has higher revenue and earnings than BlackRock Enhanced Global Dividend Trust.

Summary

THL Credit beats BlackRock Enhanced Global Dividend Trust on 10 of the 11 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 THL Credit

THL Credit, Inc. 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, primarily through investments in privately negotiated debt and equity securities of lower middle market companies. The Company is a direct lender to lower middle-market companies and invests primarily in directly originated first lien senior secured loans, including unitranche investments. In certain instances, it also makes second lien secured loans and subordinated, or mezzanine, debt investments, which may include an associated equity component, such as warrants, preferred stock or similar securities, and direct equity investments. Its first lien senior secured loans may be structured as traditional first lien senior secured loans or as unitranche loans. The Company’s investment activities are managed by THL Credit Advisors LLC.

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