Clearbridge Energy MLP Total Return Fund (NYSE: CTR) and FS Investment (NYSE:FSIC) are both small-cap financials companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, earnings, analyst recommendations, institutional ownership, dividends, valuation and risk.
Earnings and Valuation
This table compares Clearbridge Energy MLP Total Return Fund and FS Investment’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Clearbridge Energy MLP Total Return Fund||N/A||N/A||N/A||N/A||N/A|
|FS Investment||$422.81 million||4.45||$294.29 million||$0.89||8.60|
Risk and Volatility
Clearbridge Energy MLP Total Return Fund has a beta of 1.39, indicating that its stock price is 39% more volatile than the S&P 500. Comparatively, FS Investment has a beta of 0.94, indicating that its stock price is 6% less volatile than the S&P 500.
FS Investment pays an annual dividend of $0.76 per share and has a dividend yield of 9.9%. Clearbridge Energy MLP Total Return Fund does not pay a dividend. FS Investment pays out 85.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Clearbridge Energy MLP Total Return Fund has increased its dividend for 2 consecutive years.
Institutional & Insider Ownership
32.4% of FS Investment shares are owned by institutional investors. 1.0% of FS Investment shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
This is a summary of current ratings and target prices for Clearbridge Energy MLP Total Return Fund and FS Investment, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Clearbridge Energy MLP Total Return Fund||0||0||0||0||N/A|
FS Investment has a consensus target price of $9.67, suggesting a potential upside of 26.36%. Given FS Investment’s higher probable upside, analysts plainly believe FS Investment is more favorable than Clearbridge Energy MLP Total Return Fund.
This table compares Clearbridge Energy MLP Total Return Fund and FS Investment’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Clearbridge Energy MLP Total Return Fund||N/A||N/A||N/A|
FS Investment beats Clearbridge Energy MLP Total Return Fund on 9 of the 12 factors compared between the two stocks.
About Clearbridge Energy MLP Total Return Fund
ClearBridge Energy MLP Total Return Fund Inc. is a non-diversified, closed-end management investment company. The Fund’s investment objective is to provide a high level of total return, consisting of cash distributions and capital appreciation. The Fund seeks to achieve its objective by investing primarily in energy master limited partnerships (MLPs). Under normal market conditions, the Fund invests at least 80% of its managed assets in energy MLPs. Energy entities are engaged in the business of exploring, developing, producing, gathering, transporting, processing, storing, refining, distributing, mining or marketing natural gas, natural gas liquids (including propane), crude oil, refined petroleum products or coal. Legg Mason Partners Fund Advisor, LLC (LMPFA) is the Fund’s investment manager and ClearBridge Investments, LLC is the Fund’s subadvisor.
About FS Investment
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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