Solar Senior Capital (NASDAQ: SUNS) and Tortoise Energy Infrastructure (NYSE:TYG) are both small-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, profitability, institutional ownership, earnings, risk and analyst recommendations.
Institutional and Insider Ownership
25.6% of Solar Senior Capital shares are owned by institutional investors. Comparatively, 30.3% of Tortoise Energy Infrastructure shares are owned by institutional investors. 5.6% of Solar Senior Capital shares are owned by company insiders. Comparatively, 0.2% of Tortoise Energy Infrastructure shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
This is a summary of recent recommendations and price targets for Solar Senior Capital and Tortoise Energy Infrastructure, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Solar Senior Capital||0||0||0||0||N/A|
|Tortoise Energy Infrastructure||0||0||0||0||N/A|
Earnings and Valuation
This table compares Solar Senior Capital and Tortoise Energy Infrastructure’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Solar Senior Capital||$32.17 million||8.37||$23.38 million||$1.41||11.91|
|Tortoise Energy Infrastructure||N/A||N/A||N/A||N/A||N/A|
Solar Senior Capital has higher revenue and earnings than Tortoise Energy Infrastructure.
This table compares Solar Senior Capital and Tortoise Energy Infrastructure’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Solar Senior Capital||67.60%||8.38%||4.42%|
|Tortoise Energy Infrastructure||N/A||N/A||N/A|
Solar Senior Capital pays an annual dividend of $1.41 per share and has a dividend yield of 8.4%. Tortoise Energy Infrastructure pays an annual dividend of $2.62 per share and has a dividend yield of 9.9%. Solar Senior Capital pays out 100.0% 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
Solar Senior Capital has a beta of 0.6, suggesting that its stock price is 40% less volatile than the S&P 500. Comparatively, Tortoise Energy Infrastructure has a beta of 1.3, suggesting that its stock price is 30% more volatile than the S&P 500.
Solar Senior Capital beats Tortoise Energy Infrastructure on 5 of the 9 factors compared between the two stocks.
About Solar Senior Capital
Solar Senior Capital Ltd. is a closed-end, externally managed, non-diversified management investment company. The Company’s investment objective is to seek to maximize current income consistent with the preservation of capital. The Company seeks to achieve its investment objective by directly and indirectly investing in senior loans, including first lien, unitranche, and second lien debt instruments, made to private middle-market companies whose debt is rated below investment grade, which it refers to collectively as senior loans. It may also invest in debt of public companies that are thinly traded or in equity securities. Under normal market conditions, at least 80% of the value of its net assets (including the amount of any borrowings for investment purposes) will be invested in senior loans. It invests in privately held the United States middle-market companies. Its investment activities are managed by Solar Capital Partners, LLC (Solar Capital Partners or the Investment Advisor).
About Tortoise Energy Infrastructure
There is no company description available for Tortoise Energy Infrastructure Corporation.
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