BlackRock Enhanced Global Dividend Trust (NYSE: BOE) and Blackrock Capital Investment (NASDAQ:BKCC) are both small-cap financials companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, institutional ownership, dividends, valuation, analyst recommendations, profitability and risk.
This is a breakdown of recent ratings and recommmendations for BlackRock Enhanced Global Dividend Trust and Blackrock Capital Investment, as provided 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|
|Blackrock Capital Investment||0||2||0||0||2.00|
Valuation & Earnings
This table compares BlackRock Enhanced Global Dividend Trust and Blackrock Capital Investment’s top-line revenue, earnings per share (EPS) 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|
|Blackrock Capital Investment||$117.44 million||3.84||-$84.29 million||$0.28||22.04|
BlackRock Enhanced Global Dividend Trust has higher earnings, but lower revenue than Blackrock Capital Investment.
Insider and Institutional Ownership
31.1% of Blackrock Capital Investment shares are held by institutional investors. 1.3% of Blackrock Capital Investment shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Blackrock Capital Investment pays an annual dividend of $0.72 per share and has a dividend yield of 11.7%. BlackRock Enhanced Global Dividend Trust does not pay a dividend. Blackrock Capital Investment pays out 257.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Volatility and Risk
BlackRock Enhanced Global Dividend Trust has a beta of 1.04, indicating that its share price is 4% more volatile than the S&P 500. Comparatively, Blackrock Capital Investment has a beta of 0.84, indicating that its share price is 16% less volatile than the S&P 500.
This table compares BlackRock Enhanced Global Dividend Trust and Blackrock Capital Investment’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|
|Blackrock Capital Investment||19.87%||9.67%||6.19%|
Blackrock Capital Investment beats BlackRock Enhanced Global Dividend Trust on 8 of the 10 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.
Blackrock Capital Investment 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.
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