Head to Head Comparison: StoneCastle Financial (BANX) vs. Liberty All-Star Equity Fund (USA)

StoneCastle Financial (NASDAQ: BANX) and Liberty All-Star Equity Fund (NYSE:USA) are both small-cap finance companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, analyst recommendations, dividends, institutional ownership, earnings, risk and valuation.

Valuation & Earnings

This table compares StoneCastle Financial and Liberty All-Star Equity Fund’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
StoneCastle Financial $17.03 million 8.26 $7.01 million $1.76 12.23
Liberty All-Star Equity Fund N/A N/A N/A N/A N/A

StoneCastle Financial has higher revenue and earnings than Liberty All-Star Equity Fund.

Volatility & Risk

StoneCastle Financial has a beta of 0.25, suggesting that its stock price is 75% less volatile than the S&P 500. Comparatively, Liberty All-Star Equity Fund has a beta of 1.18, suggesting that its stock price is 18% more volatile than the S&P 500.

Profitability

This table compares StoneCastle Financial and Liberty All-Star Equity Fund’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
StoneCastle Financial 66.86% N/A N/A
Liberty All-Star Equity Fund N/A N/A N/A

Analyst Recommendations

This is a breakdown of current ratings for StoneCastle Financial and Liberty All-Star Equity Fund, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
StoneCastle Financial 0 0 4 0 3.00
Liberty All-Star Equity Fund 0 0 0 0 N/A

StoneCastle Financial currently has a consensus target price of $22.75, indicating a potential upside of 5.72%. Given StoneCastle Financial’s higher possible upside, equities analysts clearly believe StoneCastle Financial is more favorable than Liberty All-Star Equity Fund.

Insider and Institutional Ownership

32.0% of StoneCastle Financial shares are owned by institutional investors. Comparatively, 26.6% of Liberty All-Star Equity Fund shares are owned by institutional investors. 8.0% of StoneCastle Financial shares are owned by insiders. Comparatively, 0.1% of Liberty All-Star Equity Fund shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Dividends

StoneCastle Financial pays an annual dividend of $1.52 per share and has a dividend yield of 7.1%. Liberty All-Star Equity Fund pays an annual dividend of $0.13 per share and has a dividend yield of 2.1%. StoneCastle Financial pays out 86.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

StoneCastle Financial beats Liberty All-Star Equity Fund on 7 of the 9 factors compared between the two stocks.

StoneCastle Financial Company Profile

StoneCastle Financial Corp. is a non-diversified, closed-end management investment company. The Company’s primary investment objective is to provide stockholders with current income, and to a lesser extent capital appreciation. The Company generally invests in the senior debt, subordinated debt, preferred shares and common stock of community banks. The Company’s investment portfolio includes term loans, debt securities, trust preferred securities, preferred shares of credit securitization, preferred securities, convertible preferred stock, common stock, exchange traded fund, limited partnership interest and money market fund. The Company invests in bank issuers of various locations, such as California, Colorado, Florida, Georgia, Illinois, Kansas, Maine, Maryland, New Jersey, New York, Ohio, North Carolina, Oklahoma, South Carolina, Texas and West Virginia.

Liberty All-Star Equity Fund Company Profile

Liberty All-Star Equity Fund is a diversified, closed-end management investment fund. The Fund seeks total investment return comprising long-term capital appreciation and current income through investing primarily in a diversified portfolio of equity securities. It allocates its portfolio assets on an approximately equal basis among several independent investment management organizations having various investment styles recommended and monitored by its investment advisor. It invests at least 80% of its net assets in a diversified portfolio of equity securities. The Fund invests in various sectors, including financials, information technology, healthcare, consumer discretionary, consumer staples, industrials, energy, materials, real estate, utilities and telecommunication services. Its investment managers invest primarily for pension funds, endowments, foundations and other institutions. The Fund’s investment advisor is ALPS Advisors, Inc.

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