SLR Investment (NASDAQ:SLRC) and Invesco Municipal Trust (NYSE:VKQ) are both small-cap finance companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, dividends, profitability, earnings, analyst recommendations, risk and valuation.
SLR Investment pays an annual dividend of $1.64 per share and has a dividend yield of 8.5%. Invesco Municipal Trust pays an annual dividend of $0.63 per share and has a dividend yield of 4.6%. SLR Investment pays out 95.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
49.5% of SLR Investment shares are owned by institutional investors. Comparatively, 17.7% of Invesco Municipal Trust shares are owned by institutional investors. 6.8% of SLR Investment shares are owned by insiders. Comparatively, 5.4% of Invesco Municipal Trust shares are owned 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.
Volatility and Risk
SLR Investment has a beta of 1.21, indicating that its stock price is 21% more volatile than the S&P 500. Comparatively, Invesco Municipal Trust has a beta of 0.21, indicating that its stock price is 79% less volatile than the S&P 500.
Earnings and Valuation
This table compares SLR Investment and Invesco Municipal Trust’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|SLR Investment||$121.75 million||6.72||$15.45 million||$1.71||11.32|
|Invesco Municipal Trust||N/A||N/A||N/A||N/A||N/A|
SLR Investment has higher revenue and earnings than Invesco Municipal Trust.
This table compares SLR Investment and Invesco Municipal Trust’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Invesco Municipal Trust||N/A||N/A||N/A|
This is a summary of current recommendations and price targets for SLR Investment and Invesco Municipal Trust, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Invesco Municipal Trust||0||0||0||0||N/A|
SLR Investment presently has a consensus target price of $19.67, suggesting a potential upside of 1.64%. Given SLR Investment’s higher probable upside, research analysts clearly believe SLR Investment is more favorable than Invesco Municipal Trust.
SLR Investment beats Invesco Municipal Trust on 10 of the 11 factors compared between the two stocks.
About SLR Investment
Solar Capital is a closed-end, externally managed investment company that has elected to be treated as a business development company under the Investment Company Act of 1940 and intends to be taxed as a regulated investment company under Subchapter M of the Internal Revenue Code.
About Invesco Municipal Trust
Invesco Municipal Trust operates as a diversified, closed-end management investment company. Its investment objective is to seek to provide a high level of current income exempt from federal income tax consistent with preservation of capital. The company was founded on July 19, 1991 and is headquartered in Atlanta, GA.
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