Full Circle Capital Corp (NASDAQ: FULL) and Stellus Capital Investment Corporation (NYSE:SCM) are both financials companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, earnings, valuation, analyst recommendations, risk, institutional ownership and dividends.
This is a summary of recent ratings and price targets for Full Circle Capital Corp and Stellus Capital Investment Corporation, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Full Circle Capital Corp||0||0||0||0||N/A|
|Stellus Capital Investment Corporation||0||1||3||0||2.75|
Stellus Capital Investment Corporation has a consensus target price of $14.83, indicating a potential upside of 7.72%. Given Stellus Capital Investment Corporation’s higher probable upside, analysts plainly believe Stellus Capital Investment Corporation is more favorable than Full Circle Capital Corp.
Institutional and Insider Ownership
26.5% of Stellus Capital Investment Corporation shares are held by institutional investors. 4.2% of Stellus Capital Investment Corporation shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
This table compares Full Circle Capital Corp and Stellus Capital Investment Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Full Circle Capital Corp||-11.16%||-1.78%||-1.24%|
|Stellus Capital Investment Corporation||68.17%||10.06%||5.01%|
Volatility & Risk
Full Circle Capital Corp has a beta of 0.37, indicating that its share price is 63% less volatile than the S&P 500. Comparatively, Stellus Capital Investment Corporation has a beta of 0.56, indicating that its share price is 44% less volatile than the S&P 500.
Valuation & Earnings
This table compares Full Circle Capital Corp and Stellus Capital Investment Corporation’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Full Circle Capital Corp||N/A||N/A||N/A||N/A||N/A|
|Stellus Capital Investment Corporation||N/A||N/A||N/A||$2.12||6.50|
Stellus Capital Investment Corporation pays an annual dividend of $1.36 per share and has a dividend yield of 9.9%. Full Circle Capital Corp does not pay a dividend. Stellus Capital Investment Corporation pays out 64.2% of its earnings in the form of a dividend.
Stellus Capital Investment Corporation beats Full Circle Capital Corp on 9 of the 10 factors compared between the two stocks.
Full Circle Capital Corp Company Profile
Full Circle Capital Corporation is a non-diversified closed-end management investment company. The Company’s investment objective is to generate both current income and capital appreciation through debt and equity investments. The Company invests primarily in senior secured loans and second lien loans, mezzanine loans and equity securities issued by lower middle-market and middle-market companies that operate in a range of industries. In its lending activities, the Company focuses primarily on portfolio companies with both tangible and intangible assets available as collateral and security against its loan to help mitigate its risk of loss, and cash flow to cover debt service. The Company focuses primarily on senior secured loans and stretch senior secured loans (unitranche loans), which combine characteristics of first-lien senior secured loans and second-lien or subordinated loans. The Company’s investment advisor is Full Circle Advisors, LLC (Full Circle Advisors).
Stellus Capital Investment Corporation Company Profile
Stellus Capital Investment Corporation is a closed-end, non-diversified management investment company. The Company originates and invests primarily in private middle-market companies through first lien, second lien, unitranche and mezzanine debt financing, with corresponding equity co-investments. The Company’s investment objective is to maximize the total return to its stockholders in the form of current income and capital appreciation. It invests in various sectors, such as business services, energy, general industrial, government services, healthcare, software and specialty finance. Its investment advisor is Stellus Capital Management, LLC (Stellus Capital Management). Stellus Capital Management is responsible for analyzing investment opportunities, conducting research and performing due diligence on investments, negotiating and structuring the Company’s investments, originating prospective investments, and monitoring its investments and portfolio companies on an ongoing basis.
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