Stellus Capital Investment (NYSE: SCM) and Eaton Vance Tax Managed Buy Write Opport (NYSE:ETV) are both small-cap financials companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, earnings, valuation, institutional ownership, analyst recommendations, dividends and risk.
Valuation & Earnings
This table compares Stellus Capital Investment and Eaton Vance Tax Managed Buy Write Opport’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Stellus Capital Investment||$39.49 million||4.84||$23.19 million||$1.69||7.09|
|Eaton Vance Tax Managed Buy Write Opport||N/A||N/A||N/A||N/A||N/A|
Stellus Capital Investment has higher revenue and earnings than Eaton Vance Tax Managed Buy Write Opport.
Stellus Capital Investment pays an annual dividend of $1.36 per share and has a dividend yield of 11.3%. Eaton Vance Tax Managed Buy Write Opport does not pay a dividend. Stellus Capital Investment pays out 80.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
This table compares Stellus Capital Investment and Eaton Vance Tax Managed Buy Write Opport’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Stellus Capital Investment||57.94%||9.35%||4.96%|
|Eaton Vance Tax Managed Buy Write Opport||N/A||N/A||N/A|
Volatility & Risk
Stellus Capital Investment has a beta of 0.51, meaning that its share price is 49% less volatile than the S&P 500. Comparatively, Eaton Vance Tax Managed Buy Write Opport has a beta of 0.63, meaning that its share price is 37% less volatile than the S&P 500.
Institutional and Insider Ownership
28.2% of Stellus Capital Investment shares are held by institutional investors. 4.2% of Stellus Capital Investment shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
This is a breakdown of recent ratings for Stellus Capital Investment and Eaton Vance Tax Managed Buy Write Opport, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Stellus Capital Investment||0||1||3||0||2.75|
|Eaton Vance Tax Managed Buy Write Opport||0||0||0||0||N/A|
Stellus Capital Investment presently has a consensus price target of $14.50, suggesting a potential upside of 20.93%. Given Stellus Capital Investment’s higher probable upside, equities analysts plainly believe Stellus Capital Investment is more favorable than Eaton Vance Tax Managed Buy Write Opport.
Stellus Capital Investment beats Eaton Vance Tax Managed Buy Write Opport on 9 of the 11 factors compared between the two stocks.
Stellus Capital Investment 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.
Eaton Vance Tax Managed Buy Write Opport Company Profile
Eaton Vance Tax-Managed Buy-Write Opportunities Fund is a United States-based diversified, closed-end management investment company. The Fund’s investment objective is to provide income and gains, with a secondary objective of capital appreciation. It invests in a portfolio of common stocks and writes call options on one or more United States indices on a substantial portion of the value of its common stock portfolio to generate earnings from the option. It evaluates returns on an after tax basis and seeks to minimize and defer federal income taxes incurred by shareholders in connection with their investment in the Fund. Its portfolio of investments include hotels, restaurants and leisure; life sciences tools and services; software; technology hardware, storage and peripherals; technology hardware, storage and peripherals, and personal products, among others. Its investment advisor is Eaton Vance Management and its sub-advisor is Parametric Portfolio Associates LLC.
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